CoR delegation meeting with European Investment Bank

A delegation of the Committee of the Regions' Budget Commission lead by President Michel Lebrun and BUDG chair Bas Verkerk (NL/ALDE) met with European Investment Bank's top-management to discuss opportunities linked to the forthcoming 300 bn EU investment package, as well as of the new financial instruments designed by EIB to match 2014-2020 structural and investment funds (ESIF).

Welcoming the CoR delegation at the Luxembourg headquarter, Vice-President Wilhelm Molterer confirmed that the EIB will play a key role in delivering the investment package which will be launched by the European Commission in a few weeks, worth 300 bn over the years 2015-2017. To the concerns expressed by the CoR President Lebrun on the lack of clarity on the package financial coverage, the EIB Vice-President answered by confirming the current involvement of the European financial institution in the screening of the investments needs and the key sectors to allocate the money and confirmed that the plan will be funded with "additional resources". According to EIB senior management, the big challenge is to find suitable projects for private investment rather than to provide additional capital by new loans and guarantees to be operated by the EIB".

The study visit saw more than 10 EIB senior managers exchanging views with CoR members about credit facilities and products specifically designed for local and regional authorities, in a close integration with Europe 2020 goals. In the EU regulation for the phase 2014-2020, the scope of EIB financial instruments has been widened and expectations are growing for a strong increase in the use of tools such as framework and programme loans, which support regional and local authorities in co-financing cohesion policy investment plans. In 2007-2013 framework loans accounted for 4,6 bn while signed programme loans were worth 30 bn. These figures could double over the next seven years.

The project bonds initiative - with five signed bonds and a big growth potential over the coming here - and the European Investment Fund operation, including seed loans, co-investment fund and guarantee instrument, also raised the interest of attending regional and local leaders.

At the end of the meeting several CoR members shown their worries about the current threshold for the EIB's intervention (projects costs must be at least € 50m). Smaller local and regional authorities and/or smaller projects risk to be left out from EIB support. EIB managers stressed the role of framework loans in allowing smaller LRAs/projects to be eligible while acknowledging that some projects still struggle to get access to finance. As a result, they agreed, the priority of the Juncker package should be also to solve accessibility problems.

CoR's BUDG Commission chair Mr Verkerk, emphasised the importance of local and regional authorities for being competitive in the global economy. However, he also pointed to administrative capacity issues and encouraged his fellow CoR members to think big and to be bold.