EuropaWorld 2912/2000 The European Investment Bank (EIB)

The EIB’s mission is to further the objectives of the European Union by providing long-term finance for specific capital projects. These projects often involve strengthening the infrastructure of the EU, and promoting integration between different states. In this way, the Bank’s aim is to contribute towards building a closer-knit Europe with greater economic and social cohesion.

The Highest Possible Credit Rating
The shareholders of the EIB are the member states of the European Union themselves, who have all subscribed to the Bank’s capital. In consequence the Bank’s borrowings are, in effect, guaranteed. This gives it the highest possible credit rating and the ability to borrow money on the world capital markets at the keenest rates, the benefits of which are then passed on to its customers.

The EIB’s Board of Governors consists of the ministers designated by each of the Member States, usually the Finance Ministers. This Board lays down general directives on credit policy, approves the annual report, commits the Bank with respect to financing operations outside the Union and decides on capital increases. It also appoints members of the Board of Directors, the Management Committee and the Audit Committee to oversee the Bank’s operations.

An Expanding Role
These operations have expanded in recent years with the establishment of Economic and Monetary Union. A major overhaul of the Cohesion and Structural Funds as part of the Community’s “Agenda 2000” and preparations for EU enlargement have also expanded the EIB’s remit. With its sound financial base, and the volume of its subscribed capital recently increased to EUR 100 billion the EIB aims to help provide effective solutions to some of these challenges facing Europe in the coming decades.

An Emphasis on Job Creation
Its loans concentrated mainly on those regions lagging behind in their development facilitate equal access to transport, communications, health and education infrastructure. In the current profoundly changing economic, social and financial environment, the Bank has also adapted its lending facilities to place an emphasis on innovation and job creation.

The Bank is currently implementing its “Innovation 2000 Initiative” (i2i), intended to support development of the knowledge-based society and innovation in Europe, laying the foundation for sustainable growth and employment.

Assistance Outside the EU
The EIB also assists countries outside the EU by implementing the financial components of agreements concluded under European development aid and cooperation policies.
The EIB is based in Luxembourg and has branches in all member states. The EIB website address is http://www.eib.org..

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