Building Europe's future

This article was first published in the September 2024 bulletin of the European Parliament Former Members Association.

The European Union has gone through an extremely turbulent period in the last 5 years: from the COVID pandemic to Russia’s aggression against Ukraine, the resulting energy shock, inflation and rising interest rates, the growing impact and urgency of addressing climate change, and accelerated digitalisation.

Thanks to the EU’s coordinated and determined action on very different fronts, from health to finance, to security and defence, we have been able to overcome the different challenges that have presented themselves, showing once more that together we are stronger. The EIB Group has played a key role in mobilizing resources to invest in our shared priorities and the changing political and economic landscape will require us to continue to invest at a massive scale in the coming years.

This has been the unanimous message coming from European leaders, who want the EIB Group to play an even more important role in closing Europe’s investment gap, to strengthen productivity, social and territorial cohesion, climate action, peace, security, and open strategic autonomy - and to respond to global challenges and reinforce the EU’s voice in the new geopolitical context.

These objectives are translated into a Strategic Roadmap with eight top priorities that has recently been endorsed by the finance ministers of the 27 Member states.

We have agreed that support to climate action will remain the EIB Group’s first priority. We will continue to commit over half of the Group’s annual financing to climate action and support at least €1 trillion in green investments until 2030.

Not only because it’s the right thing to do, as we all want a liveable planet for ourselves and our children, but also because it is the smart thing to do, to lower energy bills for households, increase the competitiveness of European companies and shield our economies from the energy price shocks that we saw in the aftermath of the Russian invasion of Ukraine.

We also agreed that the EIB Group will step up its support for digitalization and new technologies, with the launch of a dedicated “Strategic Tech-EU” fund to finance areas such as artificial intelligence, quantum computing, microchips, and life sciences. That’s because we all know that our future prosperity hinges upon innovation and productivity growth, which require a substantial increase of our investments in the technologies of the future.

The list of priorities also includes stepping up support to agriculture and the bioeconomy. European farmers know already that they can rely on the bank of the European Union. From irrigation projects in Greece, to facilitating access to financing for Romanian agriculture, the EIB Group has already developed considerable expertise in this area, with more flagship initiatives still to come.

And, of course, we are determined to contribute to a modern Cohesion policy, the third leg in the three “C” triangle, together with Climate and Competitiveness.

Cohesion means bringing opportunity where talent is, and this is why our shareholders agreed that the EIB will continue devoting almost half of its annual financing for projects in EU regions where per-capita-income is lower.

This is not just sound policy, critical to address economic challenges such as skills shortages, but also good politics, as inequality of opportunity is a recipe to voter resentment.

The need for equity and fairness doesn’t apply only between member states, but also within member states. Hence, we have agreed with our shareholders to redouble our efforts to support investment in social infrastructures, such as healthcare, education and training, and housing, all of which are among the key challenges common to all Member states.

Obviously, none of these goals can be achieved in an environment of insecurity. The shifting geopolitical sands have added to the urgency of boosting support for Europe’s defence and security. After extensive consultations with our key stakeholders, the EIB has already revamped its framework for lending for dual-use technologies and infrastructures, while safeguarding its financing capacity, as per the unanimous mandate given to us by EU leaders.

The EIB Group is fully committed to accelerate the deployment of financing and advisory services that will strengthen European deterrence capabilities – ranging from ports for our navies, to drones and satellites for reconnaissance. But security extends well beyond that: it also preserves peace and prosperity in our neighbourhood, and the adaptation to our warming planet.

Beyond our shores, the EIB Group will focus its activities on Ukraine and a successful enlargement process, as well as impact-driven interventions in Europe’s neighbourhood. Europe is not alone in the world, and that’s why investments in Africa, our neighbouring continent and other projects promoted by the EU’s Global Gateway initiative will be supported, as concrete contributions to our collective well-being.

Moreover, as the financial arm of the EU, the EIB Group will play a much more active role going forward in introducing novel financial instruments that will serve as building blocks to deepen our capital markets union.

No government in Europe – whether left, right, or centre – is happy when our most promising innovators are leaving Europe because they cannot secure financing to scale-up their business locally.

Going forward, we must do more to put Europe’s capital to work, and this requires completing our single market, and forging a proper capital markets union.

The areas mentioned above will guide investment decisions in the years ahead. Their unanimous approval by the EIB’s shareholder governments highlights that despite the noise of often tense election campaigns, European governments can stay united in their diversity, and committed to building a common future, in a spirit of unity, determination and solidarity. Crucially, the consensus reached shows that politics won’t stand in the way of good policy. The EU has been able to navigate troubled waters since its creation. We have been able to tackle unprecedented challenges in recent years. Together, we will also succeed in whatever the future may bring, consolidating Europe as a beacon of peace, prosperity and human rights in the emerging new world.