Check’Europe is our section’s way of providing better information about Europe and combating misinformation. At our project meeting in Luxembourg City, we went to meet staff from two of the city’s European institutions: the CJEU and the EIB. They are much less well known than their Brussels neighbours, yet they have an impact on our lives and societies by contributing to the development of various current issues and challenges.
In Luxembourg, nestled in the heart of Europe, the European Investment Bank (EIB) operates quietly yet profoundly, shaping the continent’s future through strategic investments. Despite its significant impact, the EIB remains largely unknown to the public. Our recent interviews with Tanguy Desrousseaux and Sabine Parisse at the EIB shed light on the bank’s pivotal role and the unique contributions of their teams.
A Bank like no other
The EIB stands apart from other European institutions. As Tanguy Desrousseaux, head of the public sector and infrastructure lending team, emphasized, the EIB is an autonomous entity that, while owned by the EU member states, is not a basic EU institution nor attached directly to the European Union’s political structure. Unlike commercial banks, the EIB prioritizes long-term investments with substantial socio-economic and environmental benefits. This distinct approach is facilitated by its AAA rating, which signifies the highest creditworthiness. This rating enables the EIB to raise funds at favorable rates and pass on these advantages to its borrowers.
Strengthening the public sector in Europe
The Desrousseaux team manages an impressive portfolio, lending around €6 billion a year in France, Benelux and Ireland. Their projects cover a wide range of sectors, including social housing, health, education, transport and renewable energy. “Our aim is to support projects that have a tangible impact on people’s lives,” explains Desrousseaux. This commitment is evident in the multitude of projects financed by the EIB, from high-speed rail lines to hospitals and green energy initiatives.
Rigorous project evaluation
One of the EIB’s defining characteristics is its thorough project appraisal process. Desrousseaux highlighted that the bank’s support hinges on the project’s viability and adherence to EU priorities. Projects are meticulously evaluated for their technical, environmental, and economic soundness. This rigorous scrutiny ensures that every euro invested by the EIB contributes to sustainable development and aligns with the broader goals of the European Union.
Beyond its lending activities, the EIB also provides advisory services, helping public and private sector entities navigate the complexities of project implementation. This dual role as a lender and advisor positions the EIB as a vital partner in Europe’s development landscape.
Challenges and opportunities
Despite its successes, the EIB faces major challenges. As Mr Desrousseaux pointed out, “the need for investment in the energy transition far exceeds the capacity of the Bank, one of whose roles is to bring about more private sector financing through its action”.
In recent years, the EIB’s role in financing projects that have a direct impact on combating climate change and adapting to its effects has become one of its top priorities. In concrete terms, this has translated into a commitment to devote more than 50% of its investments to climate action and environmental sustainability by 2025. This target has already been reached in the last three years (60% in 2023). The EU’s climate bank is also committed to generating €1,000 billion in green investment over the decade 2020-2030. In total, it has already mobilised €354 billion in green investment since 2021, which means it is well on the way to meeting this target. The EIB was also the first multilateral financial institution to align all its operations since 2021 with the principles of the Paris Agreement in line with its climate roadmap.
Expanding the Reach: Financing Beyond Europe
Sabine Parisse who manages communications in Belgium and Luxembourg, highlighted the bank’s efforts to enhance transparency and public awareness. “It’s crucial for us to communicate the EIB’s impact effectively,” she noted, emphasizing the importance of informing the public about the bank’s contributions to Europe’s development.
Sabine Parisse emphasized that while the EIB primarily supports projects within the EU, it also extends its reach globally. “The EIB is mandated to support the EU’s external policies,” she explained. "This means we can finance projects in non-EU countries, particularly those that align with our core objectives of environmental sustainability and socio-economic development”, she will give us examples of differents water projects and access to water in Africa.
Mrs Parisse elaborated that entities eligible for EIB loans include public sector bodies, private sector companies, and financial institutions. This diversity enables the EIB to support a wide range of initiatives, from major infrastructure projects to micro-credit for small businesses, promoting development well beyond Europe’s borders. The European Investment Bank is now the world’s largest multilateral financial institution. It plays a crucial role in financing projects in more than 160 countries.
A tangible impact
Mr Desrousseaux illustrated the EIB’s influence with very concrete examples drawn from his regular travels throughout France. Whether financing high-speed train lines, supporting tramways in various cities or renovating secondary schools and universities, the EIB’s footprint is visible in many aspects of everyday life in numerous towns and cities in France, Europe and beyond. These investments help to improve regional connectivity and education infrastructure in order to promote sustainable urban development.
Although the European Investment Bank has become better known over the last ten years, it remains relatively outside the public eye. But its impact on the continent is undeniable, and it has made a major contribution to the economic development of the European Union, not least through its work as a long-term investor. Since its creation in 1958, the EIB has directly invested more than €1,000 billion. At a time when the EU is facing enormous economic and environmental challenges, the EIB’s contributions are necessary to continue to move Europe forward and make it stronger.
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