Visitors:
Citizens´ campaign to improve the European
Investment Bank´s transparency, accountability and environmental
performance before new funding by EU members is provided
In June 2002 the European Investment Bank sought a capital increase from the EU. At the same time, environmental groups united under the slogan NO REFORM – NO MONEY! in a call for reforms in the Bank in the four main areas in which it lags behind other international financial institutions (IFIs) such as the World Bank. The 15 EU member states who own the Bank were challenged to condition replenishment of funds on reforms in the areas of public access to information, environmental standards, development mandate and supervision.
At the time, the EIB was seeking an increase in its subscribed capital from EUR 100 billion to EUR 150 billion in order to expand its lending. The EIB needed the capital increase in order to operate legally, as it would reach its statutory limit on outstanding loans in 2003. The decision on the capital increase was made during its annual meeting in June 2002.
Using the opportunity presented by replenishment, more than 30 NGOs from all over Europe joined in a call for important reforms in these four areas:
- Transparency and access to information: Full and timely public access to all relevant project information.
- Environmental standards: The establishment of clear environmental standards to underpin the EIB's role in promoting the EU's Sustainable Development Strategy and meeting major treaty requirements such as the Kyoto Protocol on climate change.
- Development: Acceptance by the EIB that it does have a development mandate and that there should be some clarity about what this mandate is. A related demand calls for the EIB to agree with civil society on how its activities outside the EU could be carried out in a transparent manner to avoid causing social and environmental problems.
- Accountability and supervision: Greater supervision of the EIB, including enhancing the roles of the European Parliament, European Court of Auditors and the European Ombudsman in order to promote greater public accountability.
During the campaign, we prepared materials supporting our arguments and conducted advocacy work in the member states. During the one-day Annual Meeting on June 4, 2002, the EIB Governors granted the capital increase on the condition that financing for large private companies which can easily find funding on the private financial market would be limited. Our demands remain valid, and thank the campaign for the first time member states discussed the EIB and the capital increase – including the parliaments of Italy, Sweden, the Netherlands and the United Kingdom. The NGO action on June 4th in front of EIB headquarters in Luxembourg was the first such action experienced by the bank, and won't be the last.
To see pictures of the action in Luxembourg, visit www.bankwatch.org