Nedzhmi ALI- Rapporteur: Annual Report on the Control of the financial activities of the European Investment Bank for 2015
First of all I would like to thank the shadow rapporteurs from all political groups for their constructive attitude and valuable contribution during the preparation of this Report.
The European Investment Bank (EIB) is a longstanding financing partner of the EU institutions, contributing to EU integration, economic and social cohesion and regional development through dedicated investment instruments. The European Investment Fund (EIF) and the European Fund for Strategic Investments (EFSI) play a key role in complementing the EIB’s interventions. The catalytic effect of the EIB’s fund-raising is a key element in defining EU added value and ensuring that Europe remains a leading player worldwide in terms of competitiveness, innovation, infrastructure and attractiveness.
Based on the above mentioned, the main elements of the report are as follows:
Firstly – enhancing the sustainability of the EIB’s investment policy.
In 2015 were signed 77.5 billion Euros of operations, out of which 69.7 billion Euros went to EU member-states and 7.8 billion Euros went outside the EU. Consistency of EIB-financed activities with the EU’s general strategy and political priority areas is of undisputable importance.
The EIB is a core actor needed to revitalise the EU economy and maximise the effectiveness and value for money of available financial resources. It is necessary EIB systematically to pay attention to mid- and long-term effects when defining investment actions and its funding decisions and to invest in projects of systemic importance in the long term.
While there is a need to speed up economic recovery and help certain economic sectors and geographical areas catch up, it is important to have a balanced strategy with a dynamic and transparent geographical distribution of projects and investments among EU member-states. Also is important that the corresponding banks in the member-states, in order to facilitate the small and medium business, should act so as not to complicate the criteria and rules.
Secondly – monitoring the EIB’s impact in the implementation of key public policy areas.
The report on the results and impact of the EIB operations inside the EU in 2015 reveals that the investments are in the following key areas:
Innovation and skills; Small and medium Enterprises and mid-caps; Infrastructure and Environment.
EIB should continue to define its monitoring indicators in particular with regard to support the EU policies. Here comes also the importance of EIB´s contribution to the management of global issues.
Thirdly – monitoring of the EFSI’s added value and additionality.
The EFSI aims at leveraging through the EIB a total of 315 billion Euros in extra investment and new projects and EIB Group is developing various new products that will allow for higher risk taking.
In this regard, the result-driven investments should be regularly assessed through the scoreboard of indicators by the Investment Committee. The goal is to identify well-targeted projects in terms of their contribution to growth and jobs and to have an objective overview of their additionality, added value and consistency with Union policies.
Fourthly – deepening the EIB’s transparency, accountability and internal control as a prerequisite for better corporate governance.
EIB’s operations must be accompanied by greater transparency and deepened accountability so as to ensure genuine public scrutiny of its activities, project selection and funding priorities. Transparency in the implementation of EU policies leads to strengthening the EIB’s overall corporate accountability and credibility. It also contributes to enhance the effectiveness and sustainability of the funded projects alongside a zero-tolerance approach to fraud and corruption in its loan portfolio.
It is important the EIB to pursue its fight against tax evasion, tax fraud and avoidance, irregular activities and money laundering. Having in mind the role of the EIB to finance a broad spectrum of activities inside and outside EU and the significance of this financing for the economic growth, is important this institution to fulfil its activities at highest possible standards.
Finally – regarding the previous recommendations of the Parliament, EIB should report on their state of play and status especially with respect to the impact of its lending activities.