2023-08-11 21:55:06
The Government will propose to the First Vice President and Minister of Economic Affairs, Nadia Calvinoto choose the chair the European Investment Bank (EIB). The Executive considers that Calviño’s trajectory supports him to have the maximum options to reinforce the presence and influence of our country in international organizations. European Commission Vice President Margrethe Vestager is also running for the post, as is former Italian minister Daniele Franco. Currently, the president is the German Werner Hoyer. But what makes the EIB so important?
Basically, the AT is considered the financial arm of the European Union, since its main mission is to grant financing for projects that contribute to achieving the objectives of the EU, both inside and outside it. It is currently the main European tool for financing aid for Ukraine. It is also a fundamental tool in loan management Next Generation. Since its founding in 1958, the Bank has had seven presidents, all men and none Spanish, so Calviño could become the EIB’s first female president.
The EIB is the only bank that has as shareholders the member states of the EU. The participation of each Member State in the bank’s capital is based on its economic weight in the EU (expressed in GDP) when it entered the Union (Spain contributes 9.66%).
decision-making bodies
Based in Luxembourg, the EIB has three decision-making bodies: the Board of Governors, the Board of Directors and the Management Committee, and a control body, the Audit Committee.
The Council of Governors, made up of ministers (generally of the Economy) of the 27 Member States, decides on credit policy, approves the annual accounts and decides on the participation of the bank in financing operations outside the Union as well as in capital increases, and appoints the main members of the Committee structure (Board of Directors, Management Committee and Audit Committee). Determines the general guidelines of the European Investment Bank.
The board of directors It is made up of a counselor from each EU country and one from the European Commission. Thus, it is made up of 28 managers. In addition there are 19 substitutes and 6 experts. The Council has exclusive power to decide on loans, guarantees and credits and controls the management of the EIB.
The Management Committee it is the executive and permanent collegiate body; It is composed of nine members. Under the authority of the President and under the control of the Board of Directors, it is in charge of the day-to-day management of the Bank and of preparing the decisions of the Board of Directors.
The Audit Committee It is an independent body, directly responsible to the Board of Governors, responsible for guaranteeing the regularity of the Bank’s operations and books. It is composed of six members appointed by the Board of Governors.
Tool to minimize risks
The European Investment Bank is the majority shareholder of the European Investment Fund (EIF) and, together with it, constitutes the EIB Group. Within the Investment Plan for Europe proposed by the Commission, the EIB Group is part of a broader strategy that aims to fill the large investment gap by relieving investors of some of the risk inherent in projects.
The usual projects
The EIB facilitates the financing of projects that seek the development of the most backward regions; they tend to the modernization or reconversion of companies or to the creation of new activities that cannot be entirely financed with the existing means in each one of the member states; and are of common interest to several states. In the fulfillment of its mission, the Bank facilitates the financing of investment programs in combination with actions of the structural funds and other financial instruments of the Union.
The largest multilateral lender
Related news
In practice, the European Investment Bank has become the largest multilateral lender and borrower in the world. It provides its funding and expertise for sustainable investment projects that contribute to EU policy objectives. The Bank concentrates more than 90% of its activity in Europe, but it also invests heavily in the rest of the world. The EIB currently collaborates with more than 150 non-EU countries that benefit from approximately 10% of its lending activity.
Products offered by the EIB
The Bank offers loans to clients of all kinds to support growth and employment, and this support often helps attract other investors. The EIB offers credits above 25 million euros directly. For smaller loans, it opens lines of credit to financial institutions that, in turn, lend the money to creditors.
#EIB