The Governing Board of the Council of Europe Development Bank (CEB) approved, on Friday 2 December, the 2023-2027 Strategic Framework which includes a substantial capital increase.
Once the process is completed, the CEB’s subscribed capital will increase from €5.48 billion up to €9.73 billion, while the paid-in capital will increase from €0.61 billion up to €1.81 billion.
This decision by the CEB member states is described as “historic” by its Governor, Carlo Monticelli, who sees it as “a clear vote of confidence in the special role of the CEB in the international architecture”.
These new resources are essential at a time when Europe is shaken by a succession of global crises linked to the Covid-19 pandemic and the war in Ukraine and its aftermath, he adds.
Founded in 1956 to provide solutions to the problems of refugees after the Second World War, the CEB is the oldest European development bank. It has 42 member states (41 also members of the Council of Europe and the Holy See).
Ukraine is not a member, but its accession process launched in July 2022 - with an initial payment waiver due to the war - is close to being finalised.
“We are talking in terms of weeks” says Carlo Monticelli, who mentions a possible accession “as early as January”.
This membership will enable the CEB to support the reconstruction and rehabilitation needs of the country’s social sectors, in particular housing and medical care.
In addition to contributing to the reconstruction of Ukraine, the new strategic plan has two other overarching objectives: firstly, to respond to the challenges of social development and European inclusion; secondly, to “invest in assisting and integrating refugees and migrants within their host communities, and in Member States’ preparedness for a future in which migration will likely continue strongly notably because of climate change”.
Dedicated to strengthening social cohesion, the CEB promotes the values and principles of the Council of Europe (CoE), but it has a legal personality and is financially independent of the organisation, with which it nevertheless maintains important institutional links.
This is evidenced by the fact that each project submitted for approval by the Bank’s Board of Directors must receive an admissibility opinion from the CoE Secretary General.
In addition, the CEB works in collaboration with other development banks and with the European Union.
All of these co-operations will become closer in the framework of the new strategic plan. (Original version in French by Véronique Leblanc)