On Tuesday 10 May in Brussels the European Commission and the European Investment Bank (EIB) signed a €26.7 billion guarantee agreement that will allow the Commission, with funds from the EU external budget 2021-2027, to support EIB investments in third countries in sectors such as clean energy, digital and transport infrastructure and health.
The guarantee money will come from the European Fund for Sustainable Development Plus (EFSD+), the instrument that aims to mobilise private sector funds, with guarantees that can provide coverage of up to €53.449 billion, of which €26.725 billion is through the EIB.
“Over €26 billion, this represents 1/3 of the GDP of the entire Western Balkans”, commented the European Commissioner for Neighbourhood and Enlargement, Olivér Várhelyi, underlining at the signing ceremony that “this guarantee will have a multiplier effect which will bring EIB investments to a level unmatched in many regions of the world and will in particular finance the implementation of investment plans in the Western Balkans, the Southern Neighbourhood and the Eastern Partnership countries”.
He said the plans would be built around projects to remove “obstacles to growth and job creation”. He cited as examples water and sanitation, post-Covid recovery, connectivity, road rehabilitation in Moldova and post-war recovery in Ukraine.
A Commission communication on the reconstruction of Ukraine is expected on 28 May, the Commissioner said, indicating that the Commission is working on it in close cooperation with the Member States. At this stage he could not specify whether additional safeguards would be required from Member States. “All options are on the table”, said Mr Várhelyi.
His colleague for International Partnerships, Jutta Urpilainen, added that the investments are part of the EU’s Global Gateway strategic investment strategy, promoting, among other things “the green and digital transition, clean energy and green infrastructure, to achieve the UN’s sustainable development goals”.
EIB President Werner Hoyer expressed similar ideas. He said the guarantee, which is an instrument of EU foreign policy, will strengthen the EU’s capacity to foster the green and digital transformation, develop resilience and provide expertise.
The EIB is a partner of the Global Gateway strategy, in the transport, digitalisation and health sectors, he highlighted. He added: “We are ready to help Ukraine and to invest in the neighbourhood”. (Original version in French by Aminata Niang)