In the margins of the European Week of Regions and Cities, EIB President Werner Hoyer addressed regional and local leaders during the 140th plenary session of the European Committee of the Regions.

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Ladies and gentlemen, President Tsitsikostas,

It is a pleasure to be here at the Committee of the Regions today.  I regret not being able to meet you in person.

In these truly exceptional times, our resilience is tested to the maximum extent. Uncertainty is rising again causing bitter feelings, as we were starting to enjoy the first steps of normality.  

Our societies are not equipped to live in a world dominated by uncertainty for too long.

The issue today is to use maximum creativity and flexibility to cushion the dramatic impact of the COVID-19 crisis while being more decisive about the shared principles and long-term objectives guiding our recovery.

We should do this further strengthening the basic foundations of Europe’s success: peace, social progress, stability and cohesion. Europe cannot play any role globally if its citizens and its territories are divided.

Some areas are being hit harder than others. Some are facing worsening financial conditions. Most face higher needs and growing demand for public services.

Before the COVID-19 crisis, we have been observing growing threats to social cohesion and sustainability against a backdrop of stalling convergence across Europe. Facing rising inequalities, the climate emergency, and an ageing society, Europe had already massive structural needs for investment- inclusive investments to support a cohesive continent.

We cannot afford a K-shaped recovery – one where we fall together but only a few recover immediately, one where many face long-lasting and damaging consequences.

This is, ethically and politically, not sustainable!  

In response to the coronavirus pandemic, the EIB has quickly mobilised and taken measures to contain the economic effects of the crisis on European businesses and the European economy as a whole. The aim of the EIB Group’s new European Guarantee Fund is to channel support to firms, in particular SMEs most affected by the coronavirus across the EU. And I am glad to tell you that yesterday the EIB Board agreed the first operation under the Guarantee Fund, with €2.6 billion of approvals for €11.3 billion of mobilised investment

designed to help SMEs and health investment in the countries and regions hardest hit by the pandemic.

At the EIB, we have deployed an ambitious support plan to help meet the most urgent financing needs, including those of regions and municipalities, which are key in cushioning the impact of the pandemic and for the recovery.

Local authorities are in the frontline as the public entities closest to the population providing healthcare and social services. In the longer-term, their investments are crucial to help to sustain employment and the local economic fabric.

To date, we have already approved financing of €25 billion of COVID-19-related investment to improve public health, strengthen public services and support affected companies.

Among these loans, we have signed several operations with cities and regions, including Lazio, Madrid, Navarra and Central Bohemia. As we announced this week, 10 cities in Poland have received major financing from our subsidiary the EIF for green and inclusive projects with more to come.

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This is the clear and unstoppable direction of travel now. Let me stress to you that, by now, it is clear that we cannot go simply back to the ‘old’ model for a true recovery.

This is an opportunity for change.

It is an opportunity to accelerate the just transition to a greener and more sustainable future that leaves no one behind. It is an opportunity to drive a digital transformation of Europe. With the pandemic, we can see with a magnifying glass where there are digital gaps.

The EIB Investment Survey, prepared by our economics department, covering this year also 700 municipalities, shows us that for climate change related infrastructures, municipalities consider lack of finance and funding - by far - the most important constraint on  investment.

The current crisis has the potential to further weaken local finances, with the risk to delay or cancel badly needed investment.

At the EIB Group we believe that climate action and cohesion objectives overlap, are complementary and support each other.

For a just transition, we have especially to help those economically weaker regions which depend heavily on fossil fuels.  

Investments for climate action and a sustainable environment don’t need to be at the expense of cohesion objectives, on  the contrary: the EIB’s ambition to support EUR 1 trillion of “green” investments by 2030 should not be seen as a threat to cohesion policy goals but rather as an opportunity for less developed regions to foster a renewal of their economies and to nurture innovation.  

Ladies and gentlemen, supporting the objectives of EU Cohesion Policy has been at the heart of EIB operations since its foundation 62 years ago and we stay true to this mission.

Since 2014, the EIB’s annual target for cohesion lending is 30% of all new operations. We have met this target consistently and we will work hard to continue to do so.

We know that finance as such is not enough. Over the next few years we plan to increase our support to cities and regions through our pan-European advisory services (like fi-compass, Jaspers, URBIS and the European Investment Advisory Hub alongside our colleagues at the European Commission) to help designing the quality projects cities and region need.

Ladies and gentlemen,

Let me conclude by thanking the Committee of the Regions and its members for being very reliable and constructive institutional partners.

Our excellent and well-established relationship has been key in connecting better to regional and local decision makers. We are looking forward to reinforcing our successful cooperation even further in our upcoming joint action plan for 2021.

Together, we should consider new ways to offer increased technical and financial support for regional and local authorities to overcome the current economic and health crisis.

Today I am accompanied (virtually) by Vice-President Lilyana Pavlova, who has been working very hard on cohesion within the Bank. She has a clear overview of our projects with cities and regions.

Together, we are really looking forward to hearing your views and discussing your ideas.

Thank you very much!