EIB Group Forum Highlights European Resilience and Investment Priorities

EIB Group Forum Highlights European Resilience and Investment Priorities

(IN BRIEF) The second edition of the EIB Group Forum in Luxembourg convened senior policymakers, business leaders, academics, and civil society representatives to discuss EU policy priorities and challenges amidst global instability. EIB President Nadia Calviño emphasized the role of sustained investment in accelerating the energy transition and technological adoption to bolster European competitiveness and strategic autonomy. The forum, livestreamed and attended by over 900 participants, delved into themes such as energy security, innovation, and EU enlargement. The accompanying EIB Investment Report underscored increased European investment in digitalization, energy efficiency, and supply chain diversification, though warning of challenges ahead, including the depletion of firms’ financial reserves and a persistent gap in productive investment compared to the United States. Chief Economist Debora Revoltella highlighted the need for targeted policy interventions to sustain transformation and maximize the Single Market’s potential.

(PRESS RELEASE) LUXEMBOURG, 8-Feb-2024 — /EuropaWire/ — The European Union’s economy and businesses continue to demonstrate remarkable resilience in the face of multiple overlapping challenges, according to the EIB’s flagship Investment Report published. ”This resilience and past accomplishment has come about largely thanks to a well-coordinated EU policy response, which should serve as a blueprint for the future,” said EIB President Nadia Calviño at the opening of the 2nd edition of the EIB Group Forum.

“Sustained investment backed by coordinated EU policy support has been crucial to accelerate the energy transition and the adoption of new technologies” Calviño said, ahead of her keynote speech to more than 900 participants of the Forum in Luxembourg. “Europe’s competitiveness and strategic autonomy hinge upon pooling resources, crowding in private capital and building partnerships within our Union, and beyond. Europe can and will rise to the challenge.”

The EIB Group Forum brings together senior policymakers, business leaders, academics and civil society representatives. Over two days, participants will discuss EU policy priorities and challenges, and the outlook for the European economy, ahead of the EU Parliament elections in June, against the backdrop of global geopolitical instability and conflict.

Speakers include Luxembourg Prime Minister Luc Frieden, European Council President Charles Michel, European Parliament President, Roberta Metsola, Prime Minister of Albania, Edi Rama, European Commission Executive Vice-Presidents Valdis Dombrovskis and Maroš Šefčovič, EU Commissioners Wopke Hoekstra, Mairead McGuinness and Kadri Simson, as well as several ministers, senior executives and policymakers from across Europe and the world.

The Forum, which will be livestreamed, will address the themes of competitiveness, energy security, innovation and the European Union’s strategic autonomy, investment to support cohesion and the digital transition, as well as the challenges of EU enlargement and the green transition. Setting the framework for discussions, the EIB’s Investment Report shows that European firms have increased investments in innovation, energy efficiency and supply chain diversification.

However, the report warns that the depletion of firms’ own financial reserves, which have acted as a buffer, will pose a challenge for investment in the future. It underlines a divide between firms that transform and remain competitive and those that lag behind. The divide also emerges across those energy-intensive firms that are most affected by the net zero transition. With those ahead in the decarbonisation process investing and innovating more, there is a risk that this divide will become entrenched.

EU’s investment has proven more resilient than in previous crises, although a gap in productive investment between the European Union and the United States remains a challenge for EU competitiveness. Moreover, investment in new technology and innovation needs to be matched by investment in skills and social infrastructure to sustain quality of life and social cohesion.

“Structural transformation, innovation, digitalisation and decarbonisation are key priorities for preserving EU competitiveness,” EIB Chief Economist Debora Revoltella, said. “We must increase our investment in these areas, provide dedicated finance for scaling up key technologies and create an enabling environment that reduces barriers and uncertainties. The findings of the Investment Report can serve as a roadmap for policymakers and investors to navigate current challenges and opportunities.”

Looking ahead, sustaining the pace of transformation will require effective and targeted policy interventions. Reaping the full benefit of existing public investment plans is a priority and goes hand in hand with preserving the level playing field of the Single Market to fully exploit its potential. It has been estimated that eliminating one investment barrier is associated with a 1 percentage point increase in firms’ investment rate (as a percent of assets).

• For more information, please refer to the full EIB Investment Report here.
• You can see the Forum’s agenda and speakers here, the sessions will be livestreamed as of 11:00 a.m. on Feb. 7.
• Follow the EIB Group Forum on social media under the hashtag: #EIBForum

Background information

The European Investment Bank (ElB) is the long-term lending institution of the European Union, owned by its Member States. It finances sound investments that contribute to EU policy objectives. EIB projects bolster competitiveness, drive innovation, promote sustainable development, enhance social and territorial cohesion, and support a just and swift transition to climate neutrality.

The EIB Group, which also includes the European Investment Fund (EIF), signed a total of €88 billion in new financing for over 900 projects in 2023. These commitments are expected to mobilise around €320 billion in investment, supporting 400 000 companies and 5.4 million jobs.

All projects financed by the EIB Group are in line with the Paris Agreement. The EIB Group does not fund investments in fossil fuels. It is on track to deliver on its commitment to support  €1 trillion in climate and environmental sustainability investment in the decade to 2030 as pledged in our Climate Bank Roadmap. Over half of the EIB Group’s annual financing supports projects that directly contribute to climate change mitigation and adaptation, and to a healthier environment.

Approximately half of the EIB’s financing within the EU is directed towards cohesion regions, where per capita income is lower. This underscores the Bank’s commitment to fostering inclusive growth and the convergence of living standards.

About the EIB Investment Report

The EIB Investment Report is the flagship report of the European Investment Bank. Designed to serve as a monitoring tool, it provides a comprehensive overview of the developments and drivers of investment and its finance in the European Union. The report combines internal EIB analysis with the results of collaboration with leading experts to explain key market trends and give a more in-depth look at a particular thematic focus. The 2023-2024 edition reflects the EU economy’s resilience to repeated shocks and its capacity to renew itself, delivering on the promise of productive public and private investment. It incorporates the latest results from the annual EIB Investment Survey, covering the responses of some 12 500 firms across Europe to a broad spectrum of questions on corporate investment and investment finance.

Media Contact:

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+352 4379 – 70859

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SOURCE: European Investment Bank