Local view for "http://purl.org/linkedpolitics/eu/plenary/2012-03-29-Speech-4-053-000"
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"en.20120329.4.4-053-000"2
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"Mr President, it is a pleasure and an honour for me to be here for the first time in my new capacity and to respond to the report just given by Ms Ivanova. It is a real pleasure because I believe that the cooperation between our Bank and the European Parliament should be clear, should be open and should be transparent. I consider the European Parliament an ally of the Bank in the enormous challenges which we will have to meet in the future.
In the meantime, we continue to explore other alternatives in order to strengthen the Bank’s capital base so as to allow the Bank to do more. We do this while very clearly and precisely following best banking procedures and sticking to very basic principles which provide, or which are the guarantee of, the preservation of the triple-A status of this Bank. This is essential for the business model of the Bank and the European Union Member States. The shareholders of the EIB should have a keen interest in the European Investment Bank, maintaining the balance – and this is the job of any bank – between risk orientation and preserving the good quality of the portfolio, in order to be able to maintain a high rating on the market, because that is the basis for our ability to borrow at very favourable rates and pass this on to the final beneficiary. That is the real economy, and that is where we must make a difference.
Allow me first of all to thank Iliana Ivanova for her very thorough and diligent report and for her excellent cooperation with the EIB’s services. We welcome the fact that even though the report has the year 2010 in the title, it not only looks at the past but also examines matters from a broader perspective and addresses some very recent developments, as well as some key orientations for the future. We share the analyses for the current situation and the challenge the European Investment Bank is facing nowadays. Much emphasis has been put on fiscal consolidation – understandably so given the state of finances in many Member States.
Across the continent, we have realised that solid public finances are key to regaining market confidence. However, tackling the problem of public debt and fiscal consolidation is only part of the equation. The other part is restoring sustainable growth, boosting job creation and stimulating competitiveness to ensure the EU maintains its position in a world economy that is now globalising at high speed.
This job-friendly growth – as the Heads of State or Government put it at the Council meeting in January – must be pursued in parallel with fiscal consolidation and this is, as you are aware, where the EIB comes into play. It comes into play with long-term investment in key drivers of economic expansion. I welcome your backing for our commitment to focus on the knowledge triangle of research and development, innovation and education. Indeed, investment in that area is vital for Europe if it does not want to be sidelined by new actors in the global game.
You will be aware that, since 2008, the EIB has, on request by the Member States, and as a timely targeted temporary measure, extended extraordinary lending volumes in support of growth and jobs. Last year, the Bank provided its highest ever contribution to the real economy: some EUR 60 billion actually disbursed to clients at favourable conditions and long tenors. However, this has brought us to a limit, and this was clear from the beginning. This is because the EIB does not spend taxpayers’ money but obtains all the resources it needs for lending by borrowing on the markets – EUR 76 billion last year, almost half of which was from countries outside the European Union which, by the way, is also an indication of trust and confidence in the European Union.
This gradual decrease which we now have in the operation plan was planned, foreseen and necessary for us to protect the financial strength of the Bank and retain the full confidence of our investors. However, it is definitely not satisfactory; I agree with that as well.
So how do we reconcile this decrease in lending volumes with the request from our shareholders to, as it is said, strengthen support for SMEs and infrastructure and enhance action to support growth – to use the wording of the European Council meeting in January? How do we make sure that, in times of need, the EIB does not work pro-cyclically due to its capital constraints? Rather than reducing the number of projects, we have financed a lower proportion of projects – and, in practice, a constant number of projects – in order to maintain our impact across a wide spectrum of areas. We have also made sure not to withdraw from countries in need, as that would contradict our role.
We are aware that the current economic climate and budgetary shortfalls mean that we must find ways to do more with less. Combining EU budget funds with EIB resources, risk sharing and guarantees for financing mechanisms is one way of achieving this. However, at the end of the day, we have come to the conclusion that the overall lending capacity of the EIB remains constrained by its very capital base. This means there are limits to what these risk sharing instruments can achieve.
A conventional capital increase, as you mention in your report, would definitely be the most effective way to remedy that but so far, understandably, the readiness and willingness of Member States to boost our paid-in capital appears limited. Given these constraints, another way to construct capital support for the EIB would be to allow the EU to provide quasi capital."@en1
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