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Madrid – The EIB Group, composed of the European Investment Bank (EIB) and the European Investment Fund (EIF), allocated 36.2 billion euros in 2023 to projects in the poorest areas of the European Union, known as cohesion regions, and Spain was one of the most benefited areas.
In the third annual report on the EIB Group’s activities in EU cohesion regions, published on Monday, the European institution explains that this figure represents almost half (47%) of the loans and investments made by the EIB Group in the EU last year.
Cohesion loans formalized by the EIB in 2023 alone amounted to 29.8 billion euros, accounting for 45.1% of total financing commitments in the EU, thus exceeding the 42% target set by the Bank.
Additionally, it details that cohesion loans made by the EIB in 2023 reached their highest level in the Bank’s 65-year history, with a notable increase in financing for small and medium-sized enterprises (SMEs) and mid-cap companies.
Moreover, support for climate action and environmental sustainability represented 60% of total commitments in cohesion regions. The five most benefited countries last year were France, Spain, Poland, Italy, and Greece.
In this regard, the organization expects that EIB-signed operations in 2023 will provide better healthcare services to more than 5 million people, supply electricity generated from renewable energy sources to more than 6 million households, connect more than 6 million new subscribers to 5G services, and generate a significant volume of direct and indirect jobs.
On the other hand, EIF commitments in credit guarantee and venture capital for cohesion regions amounted to 6.8 billion euros in 2023, representing 49% of total EIF commitments in the EU. The five main beneficiary countries were Romania, Bulgaria, Poland, France, and Italy.
Finally, the publication explains that, in general terms, the EU classifies regions into three groups based on their level of economic development: less developed, in transition, and more developed.
EIB loans to less developed regions amounted to 17.2 billion euros, which is 26% of the EU total, above the 21% target set by the Bank.
All EU countries (except Luxembourg) have cohesion regions, including transition regions—and it is crucial to adopt specific investments in these areas to unlock their potential.
The document adds that, although considerable progress has been made in the convergence of the EU at the national level, regional outcomes within countries remain uneven.
According to the EIB Group’s Strategic Roadmap for 2024-2027, unanimously approved by the shareholders of the EU’s financial arm in June, support for cohesion policy is one of the EIB Group’s eight key priorities.
"Social and territorial cohesion is a central axis of the EIB Group’s mission and one of our main strategic priorities. Talent is distributed equally across the EU, but opportunities are not. We provide opportunities where talent is, thereby supporting EU policies. Every place, every region, matters," said the president of the EIB Group, the Spaniard Nadia Calviño. (July 15)