On Tuesday 27 June, European Investment Bank (EIB) President Werner Hoyer highlighted the complex links between the United Kingdom and the Bank and expressed the view that these links will not be cut overnight, once the UK leaves the European Union.
Asked about how the EIB views Brexit, Hoyer stated that the bank will adapt “to the loss of a strong member”. After Brexit, the United Kingdom will no longer be part of the EIB, whose only shareholders are EU member states. France, Germany, Italy and the UK each hold 16.17% of the capital of the EIB.
The links between the UK and the EIB will remain for some time, said the former German minister, explaining that the country will remain involved in the financing of projects all over the world. He said, Brexit would mean “a complicated departure from a very complex institution”.
The EIB, as an integral part of the EU’s institutions and bodies, will form part of the negotiations with the United Kingdom. Hoyer said he was in permanent contact with chief EU negotiator Michel Barnier’s team. A dedicated team has also been formed within the Bank. “We are very well prepared”, Hoyer promised.
90% of financing is within EU. Hoyer lauded the success of the EIB, “the world’s largest multilateral borrower and lender”. He said that the key to its success is the close examination of the projects applying for funding. “We invest into projects that are mature, beneficial, which give results”, he said, adding that financial engineering is part of the Bank’s DNA.
The EIB is active in over 160 countries and lends billions of euro. 90% of the funding provided is for use in the member states. Hoyer noted a change in funding needs in recent years. Previously funding went largely to rebuilding infrastructure; nowadays, the focus, even in the major economies, is on financing small and medium-sized enterprises. (Original version in French by Marion Fontana)