EIB Group activities in EU cohesion regions 2023

FOREWORD

BY KYRIACOS KAKOURIS

EUROPEAN INVESTMENT BANK VICE-PRESIDENT

As we celebrate 20 years since the biggest enlargement in the European Union’s history, let us also celebrate the achievements of European integration and the success of EU cohesion policy, which has driven two decades of socioeconomic convergence.

Addressing economic and social convergence across the European Union lies at the very heart of the European Investment Bank Group’s mission. In 2021, we adopted an ambitious new orientation for cohesion in which we aimed to increase our lending in both transition and less developed regions, while maintaining our focus on climate action and environmental sustainability.

As you will see in this report, we are delivering on these commitments and devoting other substantial resources to cohesion. Two-thirds of our advisory services target cohesion regions, providing comprehensive support tailored to the needs of public authorities, financial institutions and project promoters. This work is instrumental in speeding up the green and digital transition in these regions.

Cohesion policy is unique as it provides a European framework together with support for specific projects that have a direct impact on economic, social and territorial development and bring tangible benefits to individuals, businesses and local communities. To Europeans it is the most visible face of EU solidarity.

For all these reasons, cohesion remains one of our strategic priorities for the future. As recently announced by EIB President Calviño, the EIB Group aims to contribute to a modern cohesion policy – a policy that is more efficient and impactful. People will only come or stay in their city or region if they have affordable housing, and good access to education, healthcare and employment. Without these, regions risk losing skills, talents and people. Without people, regions cannot thrive. Without thriving regions, EU cohesion is at risk and Europe’s competitiveness is undermined.

The path to greater competitiveness and stronger cohesion lies in a holistic approach that brings together all our efforts to leverage the strengths of both the public and private sectors, at both the EU and national levels. Together we are stronger and we can only rise to the challenges ahead by acting in unity and solidarity.

FOREWORD

BY ELISA FERREIRA

EUROPEAN COMMISSIONER FOR COHESION AND REFORMS

Jacques Delors said it, and it remains true to this very day: every widening or deepening of Europe must be accompanied by reinforced cohesion. This is the firm foundation on which the European social market economy has been built.

From the creation of the European Economic Community, to the launch of the single market and the Economic and Monetary Union, to several EU enlargements, cohesion policy has been fundamental to every step of European integration. And the need remains: while the EU economy has grown significantly over the past few decades and convergence has taken place, disparities still persist – and could be exacerbated by ongoing and future structural changes. Cohesion policy therefore plays a central role in supporting sustainable development, while correcting market failures and ensuring that the benefits from these key integration milestones are evenly spread across Europe.

Over time, cohesion policy and EIB funding have been a reliable source of support and investment for the EU economy and businesses, delivering public goods for our people.

This is our joint objective with the EIB, which for many decades has been an invaluable partner to the European Commission in the implementation of cohesion policy. Joint initiatives, such as JASPERS and fi-compass, are proof of a successful cooperation that delivers results on the ground, assisting Member States in the implementation of cohesion policy. More recently, our cooperation has evolved to help bring about a fair green transition, through the Public Sector Loan Facility that is part of our Just Transition Mechanism.

I highly appreciate the Bank’s commitment to make cohesion a top priority. In particular, I welcome the Bank’s achievement of devoting at least 40% of its total financing in the European Union to projects in cohesion regions – and its commitment to increase this objective to at least 45% from 2025. EIB-supported cohesion projects provide job and education opportunities, access to public infrastructure and services, and a healthy and sustainable environment. These contribute to balanced regional development that leaves no one behind, strengthening Europe’s economy and society.

Taking stock of achievements also means drawing lessons for the future. And these lessons include the need for simplification, tailored support, and strengthening the administrative capacity of beneficiaries. The European Commission and the EIB will continue working together on this endeavour. We will keep delivering value for our people, proving that economic efficiency and equity are two sides of the same coin.

INTRODUCTION

No Community could maintain itself nor have a meaning for the people which belong to it so long as some have very different standards of living and have cause to doubt the common will of all to help each Member State to better the condition of its people. [1]

The European Union’s cohesion policy aims to promote economic, social and territorial cohesion between the different regions of the European Union to achieve a convergence of living standards and prosperity. By tackling regional imbalances, such as differences in gross domestic product (GDP), in employment opportunities, the ability to benefit from globalisation or varying exposures to the negative impacts of climate change, the policy contributes to the harmonious development of the European Union and reduces risks of fragmentation. Cohesion priority regions are defined by the EU cohesion policy map for the current