Brussels [Belgium], July 16: The European Investment Bank (EIB) Group exceeded its targets for cohesion financing across the EU in 2023, supporting projects to mitigate regional disparities. The third annual report on "EIB Group activities in EU cohesion regions" highlights how targeted support unlocks regional potential and has a direct impact on improving people's lives. It also underlines that regional convergence across the EU requires more social investments and connectivity.
The EIB Group, which also includes the European Investment Fund (EIF), committed €36.2 billion in 2023 for projects in poorer EU areas known as cohesion regions. This represented almost half (47%) of the EIB Group's lending and investments in the EU last year. Cohesion lending by the EIB alone in 2023 amounted to €29.8 billion, or 45.1% of total EU financing commitments, surpassing a 42% target set by the bank.
The EIB's cohesion lending in 2023 reached its highest level in the bank's 65-year history, with a notable increase in financing for small and medium-sized enterprises (SMEs) and mid-caps. Support for climate action and environmental sustainability came to 60% of the total commitments in cohesion regions. The top five beneficiary countries last year were France, Spain, Poland, Italy, and Greece.
"Social and territorial cohesion is at the heart of the EIB Group's mission and among our top strategic priorities," said EIB Group President Nadia Calviño. "While talent is equally spread, opportunities are not, and - in support of EU policies - we are helping to bring opportunities to where that talent is. Each place, each region matters."
Operations signed by the EIB in 2023 are expected to allow for:
More than 5 million people accessing improved health services,
Supplying more than 6 million households with electricity generated from renewable-energy sources,
Enabling more than 6 million new subscribers to 5G services,
Significant direct and indirect job creation.
EIF commitments to credit guarantees, venture capital and private equity investments for cohesion regions in 2023 stood at €6.8 billion, representing 49% of total EIF commitments in the EU. The top five beneficiary countries were Romania, Bulgaria, Poland, France and Italy.
In general, the EU categorises regions into three groups based on economic development levels: less developed, transition and more developed. EIB lending to less-developed regions amounted to €17.2 billion- 26% of the EU total and above a 21% key-performance goal set by the bank.
Source: Emirates News Agency