Brussels, 07/05/2010 (Agence Europe) - During a debate ahead of a vote by show of hands at the European Parliament on Thursday 6 May 2010 on his report on the work of the European Investment Bank in 2008, Hungarian MEP Tamás Deutsch (EPP) said the EIB had reacted fast and effectively when the economic crisis broke out, intensifying its work to provide more loans to small business and making full use of its capacity to encourage implementation of the European Economic Recovery Programme. Deutsch argued that the EIB should get fully involved in the EU 2020 Strategy. MEPs believe that by increasing the amount of money it loaned, the EIB had speedily reacted to the global credit crunch (referring to the EIB's annual report for 2008, see EUROPE 10086). Welcoming improvements in protection for whistle-blowers and other improvements in stamping out fraud, the MEPs called for greater transparency on how loans to financial intermediaries are authorised.
In a resolution, the MEPs welcome the EIB's automatic follow-up in recently years on EP recommendations and the new rules protecting whistle-blowers. They also welcomed the EIB's zero tolerance approach to fraud and corruption. The EP wants the EIB to look into providing greater protection against reprisals for people reporting on fraud from outside the bank and for a fraud blacklist to be speedily drawn up.
Concerned at the lack of transparency in how big loans are decided upon and monitored, the MEPs urged the bank to require financial intermediaries to publish details of how the loans they manage are lent on and what they are used for.
In order to improve lending to small business, the MEPs urge the EIB to take greater risks in the economic crisis when deciding on lending for SMEs but without jeopardising its AAA rating. They say the EIB should spare no efforts to simplify the rules and cut red tape.
The EP wants the EIB and Member States to look into the option available under the Lisbon Treaty for the EU to become an EIB shareholder alongside the Member States as this, they argue, would encourage greater cooperation between the EIB and the European Commission.
The MEPs say that the EIB's lending outside the EU should comply with the EU's policy objectives as set out in the EU treaties and suggest a clear division of labour in areas where the EIB may be doing the same work at other financial institutions. They call for a review of the current cooperation agreement between the European Commission, the EIB and the ERDB on financing deals in the EU's easterly neighbours, Russia and Central Asia. (O.L. trans fl)