What changed between the draft committee report and the plenary report

MOTION FOR A EUROPEAN PARLIAMENT RESOLUTION

on the control of the financial activities of the European Investment Bank – annual report 2023

(2024/2052(INI))

The European Parliament,

Changed:– having regard to the European Investment Bank (EIB)Group (‘EIB Group’) 2023 activity report of 1 February 2024 entitled ‘A Blueprint for Sustainable Living’, and to the EIB Group document of 2 February 2023 entitled ‘EIB Group Operational Plan 2023-2025’,2023-2025’,– having regard to the European Investment Bank (‘EIB’, ‘the Bank’) Investment Report 2023/2024 entitled ‘Transforming for competitiveness’, published on 7 February 2024,

Removed:– having regard to the EIB Investment Report 2023/2024 entitled ‘Transforming for competitiveness’, published on 7 February 2024,

– having regard to the EIB document of 8 May 2023 entitled ‘Mid-term review of the EIB Energy Lending Policy’,

Changed:– having regard to the EIB Group report on the implementation of the EIB Group Transparency Policy in 2023, published on 1 July 2024,

Changed:– having regard to the EIB Group document of 27 November 2023 entitled ‘The EIB Group PATH Framework – Version 1.2 of November 2023 – Supporting counterparties on their pathways to align with the Paris Agreement’,

Changed:– having regard to the EIB Group and EIB documents of 21 June 2024 entitled ‘EIB Group 2024-2027 Strategic Roadmap’ and of 29 November 2023 entitled ‘EIB Global Strategic Roadmap’,

– having regard to the EIB Group Sustainability Report 2023, published on 25 July 2024,

– having regard to the EIB information note of 6 February 2023 entitled ‘The European Investment Bank’s approach to human rights’,

– having regard to the EIB Group Complaints Mechanism Report 2023, published on 10 June 2024,

Changed:– having regard to the EIB Group document of 14 October 2024 entitled ‘Diversity, Equity and Inclusion at the EIB Group’,

– having regard to the EIB publication of 23 September 2024 entitled ‘EIB Audit Committee Annual Reports for the year 2023’,

Changed:– having regard to the EIB Group report of 15 July 2024 entitled ‘EIB Group activities in EU cohesion regions 2023’,2023’,– having regard to the EIB report of 19 October 2023 entitled ‘EIB Investment Survey 2023 – European Union overview’,

Changed:– having regard to the EIB Group report of 1926 OctoberJune 20232024 entitled ‘EIB InvestmentGroup Surveysupport 2023for –EU Europeanbusinesses: UnionEvidence overview’,of impact in addressing market failures’,

Removed:– having regard to the EIB report of 26 June 2024 entitled ‘EIB Group support for EU businesses: Evidence of impact in addressing market failures’,

– having regard to the joint communication from the Commission and the High Representative of the Union for Foreign Affairs and Security Policy of 5 March 2024 entitled ‘A new European Defence Industrial Strategy: Achieving EU readiness through a responsive and resilient European Defence Industry’ (JOIN(2024)0010),

– having regard to European Court of Auditors Special Report 22/2024 entitled ‘Double funding from the EU budget’,

Changed:– having regard to the EIB Group report of 29 December 2023 entitled ‘European Investment Bank Group Risk Management Disclosure Report – June 2023’,

Added:– having regard to the joint communication of 19 March 2025 from the Commission and the High Representative of the Union for Foreign Affairs and Security Policy entitled ‘Joint White Paper for European Defence Readiness 2030’ (JOIN(2025)0120),

– having regard to Rule 55 of its Rules of Procedure,

Changed:– having regard to the report of the Committee on Budgetary Control (A10-0000/2025),(A10-0068/2025),

Change 1

Removed:A. whereas the EIB is the largest multilateral development bank in the world, given the volume of its borrowing and lending;

Added:A. whereas the EIB Group includes the EIB and the European Investment Fund (EIF); whereas the EIB stands as the world’s largest multilateral development bank; whereas the EIB is treaty-bound to contribute to EU integration; whereas the EIB’s key priorities include providing funding for projects to foster European integration and social cohesion; whereas the EIF acts as a dedicated body for supporting the European Union’s policy objectives in the areas of entrepreneurship, job creation and economic cohesion;

Change 2

Changed:B. whereas, as a multilateral investment bank owned by the EU Member States, the EIB is managedgoverned by a Board of Governors, a Board of Directors and a Management CommitteeCommittee, and hasit itsmaintains ownrobust internal mechanisms for accountability, governance and audit; whereas the EIF is owned by the EIB (60 %), the EU (30 %) and financial institutions (10 %) from the Member States, the UK and Türkiye, and is managed by the General Meeting of EIF shareholders, the Board of Directors and the Chief Executive, with independent internal mechanisms for accountability, governance and audit, some of which are shared at the Group level;

Change 3

Changed:C. whereas both the EIB operates inand athe competitiveEIF market,operate butwithin isa alsocompetitive anmarket EUbut bodyare expectedheld to abide by high standards of transparency and stakeholder engagement;engagement as EU bodies;

Change 4

Changed:D. whereas the EIB hasGroup cross-cuttingpromotes objectivesEU forpolicies climateboth actionwithin and environmentaloutside sustainability,the economicEU and socialcollaborates cohesionclosely with other EU and convergence,national digitalinstitutions, transition,aligning andits supportfinancing forwith the EU’s external actionpolitical prioritiespriorities; aroundwhereas the world,EIB andGroup outlined eight strategic priorities in its financingStrategic isRoadmap alignedfor with2024-2027: climate action, digital transformation, defence, cohesion, agriculture, social infrastructure, external financing and promoting the EU’sCapital politicalMarkets priorities;Union;

Change 5

Changed:E. whereas the EIB is also entrustedtasked with sourcingsecuring resources,resources viathrough borrowing activities, thatwhich are essentialcrucial for the implementation ofimplementing the EU’s policies;

Change 6

Changed:F. whereas the European Council’s strategic agenda for 2024-2029 provides forenvisages an enhanced role for the EIB Group as a catalystdriver of EU defence and security, and highlightsemphasises the need to bolsterboost EU competitiveness throughand aimprove citizens’ economic and social well-being through significant collective investment effort,efforts, mobilisingleveraging both public and private funding;

Change 7

Changed:G. whereas the Draghi report on the future of European competitiveness madeproposed numerous suggestions forways furtherto expandingexpand the role of theEIB’s EIBrole in financing EU policies and enablingto enable the EIB to takeassume more risk;

Change 8

Changed:H. whereas itthe EIB Group’s core mission is essentialto bolster Europe’s potential for job creation and economic growth; whereas its investments should tackle inequalities by improving access to jobs, training opportunities, housing and education in order to address thepoverty barriersand unemployment; whereas it is crucial to accessovercome barriers to financefinancing for small and medium-sized enterprises (SMEs) and mid-caps; whereas public lending and guarantee schemes areserve anas importantvital countercyclical policy tool,tools, particularlyespecially during economic downturns, but also for theand mitigationhelp ofmitigate structural market failures;

Change 9

Changed:I. whereas the EIB is an essentiala componentcornerstone of the European financial architecture for development and the largest multilateral lender in the EUEU’s neighbourhoodneighbouring regions;regions, including the Eastern Neighbourhood countries, the Western Balkans, the Middle East, and North Africa; whereas the EIB is expected to help close the gap in productive investment between Europe and its main competitors by increasing investment in innovation, communication technology and intellectual property;

Change 10

Changed:J. whereas the success of the EU’s policies and thepolicy effectivenessobjectives ofand their effective implementation increasingly reliesdepend on the EIB Group; whereas it is clear that the intensitydepth and quality of Parliament’s scrutinyoversight of the EIB’s financial activitiesoperations should therefore be consistentin line with the intensity of EIB-Commission cooperation, which has become very significant;

Change 11

Changed:K. whereas the EIB’s business model demandsrequires the highest standards of integrity, accountability and transparency, and adequaterobust measures need tomust be adoptedimplemented and continuouslyregularly updated to counter all formscombat offinancial fraud, corruption, money laundering, financingterrorism, oforganised terrorism,crime and organisedboth crime;tax evasion and avoidance; whereas the EIB Group has a control framework aimed at preventing and mitigating sanctions risks;

Change 12

Added:L. whereas the EIB Group adheres to the Basel Committee on Banking Supervision’s definition of compliance risk, with the aim of preventing the risk of legal or regulatory sanctions, material financial loss, or damage to reputation; whereas the Bank takes appropriate measures to mitigate such risks by ensuring strict compliance with legal and regulatory frameworks, both at EU and international level;

Financial operations and performance

Change 13

Changed:1. NotesAcknowledges that the EIB has performedoperated effectively and efficiently in an internationala contextlandscape affectedmarked by globalsignificant challengesglobal relatedchallenges, toincluding geopolitical situations, the effects oftensions, climate change impacts and other situationsfactors affectinginfluencing the global economy; suggests exploring both the EIB’s effectiveness and efficiency through thoughtful analysis, particularly focusing on the impact on competitiveness and growth;

Change 14

Removed:2. Notes that the EIB Group’s consolidated result under the International Financial Reporting Standards (IFRS) amounted to EUR 2.272 billion in 2023, compared to EUR 2.327 billion in 2022 (a decrease of 2.4 % year on year);

Added:2. Recognises that EIB financing is becoming increasingly crucial in the context of high interest rates and constrained public finances; expects the EIB, in the context of a challenging economic outlook and increased global competition, to address constraints to EU competitiveness, such as volatile energy prices, skills shortages in key sectors and insufficient investments in innovation and new technologies;

Removed:3. Observes that the EIB’s total liquidity ratio remained within internal limits to the end of 2023; stresses that the EIB’s AAA rating with a ‘stable’ outlook is necessary to ensure appropriate market sources of financing at preferential rates and that it must be preserved; underlines that the EIB’s high credit standing is key to its successful business model;

Added:3. Notes that the EIB Group achieved strong consolidated results amounting to EUR 2.272 billion in 2023 under the International Financial Reporting Standards (IFRS), compared to EUR 2.327 billion in 2022, reflecting a year-on-year decrease of 2.4 %; calls for a detailed analysis of the factors contributing to this decrease, especially since the period was marked by steady economic growth; observes that EIB reserves reached over EUR 56 billion in 2023, up from EUR 53.9 billion in 2022 and EUR 36 billion in 2014;

Removed:4. Notes that the EIB’s total disbursements amounted to EUR 54.4 billion in 2023 (of which EUR 53.4 billion under the EIB’s own resources), compared to EUR 54.3 billion (of which EUR 53.3 billion under the EIB’s own resources) in 2022; observes that, according to an economic model developed jointly by the EIB’s Economics Department and the Commission’s Joint Research Centre, the overall investment signed within the EU by the EIB Group in 2023 alone will create about 1 460 000 new jobs in the EU-27 by 2027 and will have an impact on the EU’s economy equivalent to a 1.03 percentage point increase in GDP;

Added:4. Notes that the EIB’s total liquidity ratio remained well within internal limits to the end of 2023 and that the EIB’s Common Equity Tier 1 (CET1) ratio stood at 33.1 % in 2023, significantly higher than the average ratio of significant institutions supervised by the European Central Bank (ECB) at that time; emphasises that maintaining the EIB’s AAA rating with a ‘stable’ outlook is crucial for securing favourable market financing at preferential rates and should be preserved; underlines that the EIB’s high credit standing is key to its successful business model;

Added:5. Calls on the EIB to maintain its strong capital position and consistently high profits, but notes that the Bank has potential to absorb potential fluctuations in returns without compromising shareholder capital or its credit rating, has the capacity to take on more risk in strategic investments and is well-equipped to invest more in higher-risk innovative projects where private capital remains hesitant;

Added:6. Highlights that the EIB’s total disbursements reached EUR 54.4 billion in 2023, with EUR 53.4 billion from its own resources, compared to EUR 54.3 billion (EUR 53.3 billion from its own resources) in 2022; observes that the EIF’s disbursements on private equity investments amounted to EUR 139.7 million in 2023, compared to EUR 113.7 million in 2022; notes that, according to an economic model developed jointly by the EIB’s Economics Department and the Commission’s Joint Research Centre, the EIB Group’s overall investment within the EU in 2023 is expected to create around 1 460 000 new jobs in the EU-27 by 2027 and boost the EU’s GDP by 1.03 percentage points; calls on the EIB Group to ensure a more balanced geographical distribution of investments to maximise their impact across all EU regions, promoting cohesive and inclusive growth throughout the Union, with particular attention to under-represented and less developed areas;

Added:7. Recalls that the EIB’s Statute mandates geographical balance among its staff and that the selection of staff members must be based on merit, while also considering fair representation of nationals from all Member States; encourages the Bank to continuously monitor geographical balance among its staff and to adjust the recruitment process accordingly, if needed;

Added:8. Welcomes the fact that the EIB Group upholds a rigorous policy against tax fraud, tax evasion, tax avoidance, money laundering and terrorism financing;

InvestEU, the simplification of the multiannual financial framework, and the Recovery and Resilience Facility

Change 15

Changed:5.9. Welcomes the adoption, on 13 December 2023, of the EIB Group Operational Plan 2024-2026, which summarisesoutlines the priorities set and activities to be carried out tofor deliverimplementing the EIB Group’s strategy forover the next three years; calls for adjustments to new market conditions, including simplification and a reduction of bureaucracy to remove barriers to financing for SMEs, which must be significantly increased; acknowledges that increasing higher-risk activities and mandates is crucial for providing effective support to high value-added and innovative sectors;

Change 16

Changed:6.10. Recalls that the EIB Group has been assignedallocated 75 % (EUR 19.6 billion) of the EU budgetary guarantee provided under the InvestEU Regulation; highlights thatthat, in 2023 alone, the EIB approved 30 operations under InvestEU fortotalling EUR 9.1 billion; believes that in order to stay competitive, significant investments are needed, primarily from the private sector; believes that focusing on innovative projects, start-ups and scale-ups would enhance European competitiveness and growth; notes that this requires mobilising private investments; calls, therefore, on the EIB to play a totalmore ofsignificant EURrole 9.1in billion;strategic de-risking through guarantees, thereby encouraging private capital investment;

11. Stresses that, within the current 2021-2027 multiannual financial framework, the EIB manages 87 mandates from the Commission, increasing to about 130 if those relating to shared management and assigned by local governments and the Member States are included, and notes that the EIB produces no fewer than 457 reports a year for these; points out that de-bureaucratisation and simplification are deemed necessary to enable better use of resources;

Change 17

Changed:8.12. HighlightsEmphasises that the EIB is managing six Recovery and Resilience Facility (RRF) mandates in four Member States, signed in 2021 (Greece and Italy), in 2022 (Romania) and in 2024 (Spain), for an overall value oftotalling EUR 8.7 billion; understands, however,acknowledges that the introductionadoption of instruments based on ‘financing not linked to costs’,costs’ instruments, which have greatly grown insignificantly volumeexpanded with the RRF, objectivelyinherently increasesraises the risk of errors and mismanagement, in particular double funding; callsexpresses onits concern about the Commissiontransparency, auditing and monitoring of the implementation of the RRF; calls on the EIB,EIB into itscooperate capacitywith asMember aStates mainto partneraddress government capacity constraints and advisor,the tolack refrainof fromtechnical submittingskills fromso anyas newto proposalsensure that useRRF theresources RRFare managed as aeffectively blueprintas forpossible, settingin financingalignment mechanisms,with includingnational structures and complying with all RRF reporting requirements, especially in the Commission’simplementation upcomingof proposalinvestment forprojects aand multiannualreforms; financialurges frameworkthe forCommission and the periodEIB, afterin 2027;its reiteratesadvisory thatrole, theto simplificationrefrain thatfrom proposing new financing mechanisms based on the EIBRRF pursuesmodel shouldwithout nottaking comecorrective atmeasures, including in the costupcoming ofpost-2027 weakeningmultiannual thefinancial soundnessframework; ofstresses that, while the managementEIB ofseeks EU’ssimplification, resourcesit andmust erodingnot compromise the possibilitysoundness toof exerciseEU scrutinyresource tomanagement keepor the relevantability actorsto accountable,maintain oversight and accountability, as establishedmandated underby the Treaties;

Energy security

Change 18

Changed:9.13. Notes the EIB’s continued support for security of supply, which mainly takes the form of reinforcing electricity grids and cross-border infrastructure, of reducing energy demand through energy efficiency projects and of fostering low-carbon power generation; underlinescommends the fact that the EIB has supported new dimensions of energy security, such as demand response and energy storage, and has promoted the development of a sustainable supply of critical raw materials (CRM) needed for the energy transition; calls for an urgent analysis of the real impact of these projects implemented to date, especially of their impact on the availability and cost of energy and thus on the general competitiveness of European companies;

Change 19

Changed:10.14. Reiterates itsthe callneed to tackleaddress energy poverty and emphasises the need for a fair and inclusive energy transition; recalls that the energy crisis is fuelling inflationaryexacerbating pressures,inflation, increasing food insecurity and squeezingstraining household budgets, andbudgets; invitesencourages the EIB to useleverage the Just Transition Mechanism and the Modernisation Fund to support the regions and populations most affected by the energy transition; isstresses awarethe importance of using the Just Transition Mechanism to support workers and regions affected by the phase out of fossil fuels, ensuring access to retraining and quality jobs; recognises that manynumerous sectors are facinggrappling increasingwith challenges becausestemming offrom the jointcombined effecteffects of adaptationadaption to European Green Deal objectives and the consequencesrepercussions of the energy crisis and inflation; stresses that accelerating the risedeployment inof inflation;innovative callslow-carbon ontechnologies therequires EIBbringing their costs to stepa uplevel itsthat effortsis tocompetitive lowerwith thefossil costfuels ofand capitaladjusting to the ongoing reform of cleanthe technologies;green policies;

Change 20

Changed:11.15. NotesAcknowledges that the REPowerEU plan is a crucial new element in the EU policy response to the energy crisis; notes that, in July 2023, the EIB Group increased the financing targets of the October 2022 commitment from EUR 30.0 billion until 2027 to EUR 45.0 billion (REPowerEU+), in order to scale up its efforts to support the EU’s energy security; calls for a clear overview of potential double funding of energy projects;

Change 21

Changed:12.16. Underlines that in 2023, the EIB provided approximately EUR 21.4 billion ofin financing for energy-related projects, of which around EUR 19.8 billion in the EU and EUR 1.6 billion outside the EU; considers it necessary to increase not only the volume of financing for energy-related projects, but also the efficiency of the investments; underlines, in this regard, the importance of the EIB’s combined offer of competent technical assistance and innovative financial support, and encourages the Bank to expand the range of innovative financing products offered to economic operators, going beyond the standard market offer;

Change 22

Removed:13. Believes that hydrogen and its derivatives, especially when obtained from renewable sources, can play a role in meeting the EU’s decarbonisation objectives and reducing fossil fuel dependence; calls on the EIB to play a key role in mobilising private investments;