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Home >  EU Funding news >  News

Monday, February 21, 2011

1 billion euro extra for the Mediterranean

Environment, Co-op & Development, Economy - Finances, SME Policy,Administrations States,SMEs,Banks,

News On January 17th, 2011, the European Parliament decided to increase by 1 billion euros the ceiling on European Investment Bank lending on infrastructure and small and medium enterprises in the Mediterranean region. The decision comes in line with the appeal from the High Representative Catherine Ashton to allocate additional funds to help Tunisia and Egypt.

MEPs voted to increase the overall cap on EIB lending outside the EU on the basis of an EU budget guarantee by €1.8 billion, including additional support of €1 billion for SMEs and infrastructure in the Mediterranean basin. The lending ceiling for the Bank would amount to €29.567 billion up to the end of 2013, of which 2 billion is earmarked for climate action projects. The increase was approved via an amendment tabled by Parliament's permanent rapporteur for the EIB, Ivailo Kalfin (S&D, BG), and was part of a wider package aiming at renewing the mandate for the EIB, which will expire by the end of October 2011. Mr Kalfin explained that if Europe would like to give a clear signal to the people of the Mediterranean at this crucial time, it should enable the EIB to maintain the intensity of its activities in the region. More emphasis on the environment Parliament is keen for the environment to play an important role in the new EIB mandate. MEPs have several times pressed the EIB to phase out its lending to fossil fuel projects in developing countries and to switch to low carbon energy investments. This is a strategic goal of the G20, to be reached by 2015. Parliament also made an additional €2 billion available for loans for climate-related projects. Mr Kalfin after the vote declared that he hoped that this new instrument would create incentives for the potential recipient countries to commit more to the climate related goals of the EU. Parliament also urged the EIB to make some qualitative improvements. It wants to see better coordination with the newly established External Action Service and the European Commission in implementing the Union's external policies. MEPs also want more transparency, more stakeholder participation and better monitoring and reporting, particularly with regard to the impact on development and the environment. The amendment to add €1 billion to lending for the southern neighbourhood was adopted today by 546 votes to 48 with 6 abstentions. The overall legislative resolution was adopted - at first reading - by 538 votes to 37 with 37 abstentions. Negotiations with the Council should start shortly. The second reading is expected within three to four months.

Source :  Press room - European Parliament

More information  Press room - European Parliament




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