Promoting cohesion has been a core mission of the Bank since its foundation in 1958. Over the course of the European Union’s last long-term budget, between 2014 and 2020, the EIB Group supported investments worth around €630 billion in poorer, “cohesion” regions, equivalent to about 16% of the European Union’s gross domestic product.
According to the report, the impact and long-term benefits of these investments go even further than containing immediate economic shocks. By 2040, the investments supported between 2014 and 2020 are expected to raise EU gross domestic product (GDP) by an estimated 4.7% above the baseline scenario, and lead to the creation of an additional 3.2 million jobs.
The report, which follows the new cohesion orientation that the Bank adopted last October, examines the activities of the EIB Group in cohesion regions in 2021 in terms of policy objectives, activity sectors, countries, contribution to the United Nations Sustainable Development Goals (SDGs) and sector-specific project results. It features case studies from across the European Union, outlines the economic and social challenges facing cohesion regions and reviews the macroeconomic impact of the Group’s support.
“In response to all the challenges facing the European Union and its Member States, the EU bank is increasing both its lending and advisory support for cohesion,” said EIB Vice-President Lilyana Pavlova. “This report, the first of its kind, clearly shows that the EIB’s support for cohesion policy is making a positive difference for citizens and businesses. I hope that the report can also inspire policymakers and business leaders, showing how they can best use the EIB Group’s tools to help their communities thrive.”
“We are delighted to publish this first report concerning our cohesion activities. With €16.8 billion worth of transactions signed in 2021, we have provided strong support to the SMEs located in the less developed regions of Europe. Cohesion is a key strategic priority for the EIF and, going forward, we have reinforced our commitment by dedicating a large part of our future activities to these areas,” said European Investment Fund Chief Executive, Alain Godard.
In 2021, the EIB Group provided €36.6 billion to projects in EIB cohesion regions. For the EIB, this represented 41.5% of its 2021 EU lending, well above the share of cohesion regions in the European Union’s economy (35% based on GDP). EIB lending supported projects worth €47.3 billion in cohesion regions. In terms of lending to cohesion regions, Poland obtained the most (€4.5 billion), followed by cohesion regions in France (€3.3 billion) and Spain (€2.7 billion). Relative to the size of their economies, Greece, the Czech Republic and Romania also benefited from high cohesion lending volumes with €1.6 billion, €0.9 billion and €0.8 billion, respectively.