European Investment Bank facts for kids

Quick facts for kids
European Investment Bank

EIB headquarters, East building
Founded	1958; 67 years ago (1958)
Type	International financial institution
Location	Kirchberg, Luxembourg
Owner	EU member states
President	Nadia Calviño
Vice President	Ambroise Fayolle
Employees	4,020 (2022)

The European Investment Bank (EIB) is like the bank for the European Union. It is owned by the 27 countries that are part of the EU. The EIB is the biggest international bank of its kind in the world.

It helps fund projects and companies that support the goals of the European Union. This includes giving out loans, investing in companies, and offering guarantees. The EIB focuses on areas like climate action, protecting the environment, and helping small businesses. It also supports development, builds important infrastructure, and helps countries grow together.

The EIB has played a big part in helping during tough times. This includes the 2008 financial crisis and the COVID-19 pandemic. From 1958 to 2018, the EIB invested over 1.1 trillion euros. It mostly funds projects that countries can't fully pay for on their own.

The EIB is a major supporter of green finance worldwide. In 2007, it was the first group to create green bonds. These are special bonds that fund environmentally friendly projects. By 2021, the EIB stopped funding projects that use fossil fuels. It plans to invest 1 trillion euros in climate projects by 2030. This includes helping regions move away from old industries fairly.

The EIB does not get its money from the regular EU budget. Instead, it raises money by selling bonds in the international capital markets. The EIB has the highest possible credit rating, called "triple-A". This means it is very trustworthy for borrowing money. Each EU country puts money into the EIB's reserves. The amount depends on how big their economy is compared to the rest of the EU.

The EIB was started by the Treaty of Rome in 1958. It was the first regional development bank in the world. It was set up to help all parts of the EU grow fairly. This includes lending money to less developed regions. The EIB works in 140 countries around the world. About 10% of its investments are outside the EU. These help support the EU's goals for development and working with other countries.

What the EIB Does for the EU

The European Investment Bank is the bank of the European Union. It is owned by the EU countries. Its main job is to fund projects that help the European Union reach its goals.

Most of the EIB's work (90%) happens inside the European Union. This helps EU countries work closer together and develop. The EIB also invests outside Europe. These investments support the EU's efforts to help other countries develop. It works in 140 countries. These include countries hoping to join the EU, and those in Africa, Asia, and Latin America.

The EIB makes its own decisions about borrowing and lending money. It works closely with other important EU groups. These include the European Commission, the European Parliament, and the Council of the European Union.

How the EIB Helps Projects

The EIB helps both private companies and public groups. It offers different ways to get money for projects. Its main job is to provide funding. It also gives advice on how to find other ways to invest.

Loans for Projects

The EIB gives long-term loans. These loans can cover up to half of a project's total cost. They are for public projects, private businesses, and small and medium-sized companies. The EIB works with other banks to give smaller loans to businesses.

For big projects, the EIB can lend €25 million or more. For public projects with many smaller parts, it can offer €100 million or more. All projects must fit with one or more of the EIB's main goals.

Investing in Companies

The EIB also invests in companies and funds. These often focus on things like infrastructure, the environment, or small businesses. When the EIB invests, it sometimes gets a share of the company. This helps companies get money to grow.

The EIB also helps newer companies, like startups. It offers special loans for companies in areas like biotech, software, and renewable energy. The European Investment Fund (EIF) helps the EIB by working with small businesses and financial partners.

Guarantees for Safety

The EIB offers guarantees. A guarantee is like a promise from the EIB to cover some of a loan if a borrower can't pay it back. This makes it safer for other investors to lend money to projects. It helps projects get more private funding.

The EIB also gives guarantees to small and medium-sized businesses. This helps them get the loans they need.

Advice and Support

The EIB offers advice and technical help. This is available for projects both inside and outside the European Union. They can give advice on how to set up investments. They also offer guidance on how to complete a project.

Before getting money from the EIB, clients can use its knowledge. This includes help with financial plans and how projects might affect climate change.

Special Partnerships

Besides using its own money, the EIB works with others. It sets up partnerships to fund projects that might be riskier. These partnerships can combine loans with grants. Grants are funds that do not need to be paid back.

The EIB partners with many groups around the world. These include the European Commission and the United Nations.

Where the EIB Gets its Money

The European Investment Bank is a not-for-profit organization. Even though it's part of the European Union, it doesn't get money from the EU budget. The bank is financially independent. It has its own money and also raises funds from international markets.

The EIB sells bonds to borrow money. It then lends this money to its clients. This is a common way for governments and companies to borrow. People and large investment groups around the world buy the EIB's bonds.

The EIB focuses on long-term investments. It has a "triple-A" credit rating. This means it can borrow money at very low rates. Then, it can lend money at low rates to projects that help the EU's goals.

The EIB also offers special bonds called Green Bonds. These bonds specifically fund projects that help fight climate change. In 2007, the EIB created the first Green Bond, called a Climate Awareness Bond. The EIB is a world leader in issuing Green Bonds. The money from these bonds supports projects in renewable energy. This includes wind, hydroelectric, and geothermal energy. It also funds projects that make energy use more efficient.

Who Owns the EIB?

The European Investment Bank is owned by the EU countries. Each country puts money into the bank's capital. The amount depends on how big their economy is.

After the Brexit (when the United Kingdom left the EU), the other EU countries increased their contributions. This kept the total amount of money in the bank the same. As of March 2020, the EIB's total capital was €248.8 billion. The UK leaving did not affect the EIB's top credit rating.

Breakdown of the EIB's capital as of 1 March 2020

country	paid-in capital	uncalled capital	total subscribed capital
Germany	€4167287407	€42555081742	€46722369149
France	€4167287407	€42555081742	€46722369149
Italy	€4167287407	€42555081742	€46722369149
Spain	€2500372476	€25533049371	€28033421847
Netherlands	€1155143086	€11795972691	€12951115777
Belgium	€1155143086	€11795972691	€12951115777
Poland	€1013823198	€10352856629	€11366679827
Sweden	€766322950	€7825458763	€8591781713
Denmark	€584882101	€5972639556	€6557521657
Austria	€573418425	€5855575961	€6428994386
Finland	€329450757	€3364251741	€3693702498
Greece	€313330025	€3199631688	€3512961713
Portugal	€201923382	€2061980655	€2263904037
Czech Republic	€196841038	€2010081290	€2206922328
Hungary	€186220601	€1901628594	€2087849195
Ireland	€146220406	€1493158667	€1639379073
Romania	€146220406	€1493158667	€1639379073
Croatia	€94750368	€967562174	€1062312542
Slovakia	€67004670	€684231479	€751236149
Slovenia	€62207800	€635247290	€697455090
Bulgaria	€45491879	€464549338	€510041217
Lithuania	€39033623	€398599585	€437633208
Luxembourg	€29244304	€298634014	€327878318
Cyprus	€28676120	€292831891	€321508011
Latvia	€23821199	€243254895	€267076094
Estonia	€18395807	€187852433	€206248240
Malta	€10915533	€111466131	€122381664
27 total	€22190715461	€226604891420	€248795606881

The EIB Group

The EIB Group was formed in 2000. It includes the European Investment Bank (EIB) and the European Investment Fund (EIF). It also includes the EIB Institute.

European Investment Bank (EIB)

Most of the EIB's work (90%) happens inside the European Union. It aims to help European countries work together and grow. It also invests outside Europe to support the EU's development goals. The EIB works in about 140 countries worldwide.

It is one of the biggest international lenders. Since it started in 1958, the EIB has invested over a trillion euros.

European Investment Fund (EIF)

The European Investment Fund (EIF) is like the venture capital part of the European Union. It also helps small and medium-sized businesses (SMEs) by offering guarantees. In 2018, SMEs made up almost all businesses in the EU. They employed two-thirds of all workers.

The EIF helps businesses at every stage of their growth. This includes new startups and companies that are growing fast.

The European Investment Bank owns most of the EIF (62% of shares). The European Commission owns 29% of shares. The EIF works based on special instructions from EU groups.

EIB Institute

The EIB Institute was created in 2012. Its job is to support social, cultural, and academic projects. It works with European groups and the public. It helps the EIB Group connect with communities. The EIB Institute is part of the EIB itself.

EIB's Goals and Activities

The EIB is a not-for-profit organization. It provides long-term funding, guarantees, and advice for projects. These projects help achieve the goals of the European Union. It is part of the European Commission's plan to fill investment gaps. It does this by taking on some of the risk in projects it funds.

The bank funds projects in many areas. These include climate action, environment, and new ideas. It also supports infrastructure, small businesses, and development. The EIB helps during crises like the COVID-19 pandemic. Since 1959, the EIB has supported almost 25,000 projects worldwide. It funds projects both inside and outside the EU. These projects must meet certain rules. For example, they might be in less developed regions. Or they might be projects that benefit many EU countries.

The bank wants to help economies grow in a sustainable way. This applies to EU countries and other nations. Because of its top credit rating, the EIB can borrow and lend money at low rates. The EIB Group works with many banks and investors. This helps support companies, small businesses, and startups.

The EIB Group helps reduce risks for investors in projects. Projects are carefully checked before they get funding. This includes looking at how they might affect carbon emissions.

Climate Action

The EIB Group is one of the world's biggest funders of climate action. The EIB plans to invest 1 trillion euros in climate projects by 2030. This includes helping regions transition fairly. The EIB Group promised in 2019 to follow the Paris Agreement goals. This means all its activities will support climate action.

In 2020, EU countries approved the EIB Group Climate Bank Roadmap. This plan shows how the EIB will help with the European Green Deal. It will also support sustainable development outside the EU. By the end of 2021, the EIB stopped funding all fossil fuel projects.

The EIB helps with the European Green Deal. This plan aims for Europe to be carbon-neutral by 2050. It funds projects that limit global warming to 1.5 °C. It also fights environmental degradation and loss of biodiversity. In 2019, the EIB Group funded €19.3 billion in climate change projects.

Innovation and Skills

Since 2000, the EIB has invested over €210 billion in projects that improve skills. This includes €14.4 billion in 2019 alone. This support helps develop new products and business ideas. It also increases investment in research and education. It helps improve internet access and supports women in the workplace.

Development Support

The EIB Group funds projects that help reduce poverty and inequality. It aims to support steady growth in EU countries and developing nations. Since 2010, the EIB has provided €69.6 billion in funding outside the EU. In 2020, it offered loans to over 100 countries. It funded vaccines and treatments during the COVID-19 pandemic. It also invested €1.7 billion to help Western Balkan countries recover. The EIB works with groups like the United Nations Development Programme. It also partnered with the World Health Organization to fund healthcare in 10 African countries.

Infrastructure Projects

Since 1958, the EIB has supported building important infrastructure. This includes projects in EU countries and other nations. In 2019, the EIB provided €15.74 billion for infrastructure. The EIB supports projects like sustainable transport and energy efficiency. It also helps with urban development, digital networks, and social housing. Other areas include cultural heritage and water management.

Helping Small and Medium Businesses

The EIB is part of InnovFin, an EU program for innovators. Through this program, the EIB Group directly funds medium-sized companies. It also offers special loans for growing European companies.

The EIB Group works with many banks and investors. This helps small businesses get funding, even in areas where it's hard to find. The EIB helps micro-enterprises (0-9 employees) up to mid-caps (250-3,000 employees).

In 2019, the EIB Group provided €25.52 billion in loans and services. This helped 386,600 small and medium businesses. These businesses employed 4.4 million people.

Working Together (Cohesion)

The EIB focuses on helping EU countries grow together. It aims to reduce differences in wealth and opportunities. The EIB gives priority to projects that create jobs and improve education. It also supports public services and a healthy environment across the EU. The EIB aims to spend 30% of its new operations on cohesion projects. In 2019, this amounted to €16.13 billion.

History of the EIB

The European Investment Bank was created by the Treaty of Rome. This treaty also started the European Economic Community (EEC) in 1958. At first, the bank's job was to provide loans for Europe's infrastructure projects.

The Early Years (1960s)

In 1962, the EIB was allowed to fund projects outside the European Community (EC). The EC was formed in 1957 by six countries: Italy, France, West Germany, Luxembourg, Belgium, and the Netherlands. These countries wanted to work more closely after World War II. Also in 1962, the EIB gave its first loan with another bank. It loaned money to Italian companies for a chemical complex and electricity production.

In 1968, the EIB moved from Brussels to Luxembourg City. It also started offering "global loans" for small and medium-sized businesses. As economies grew in the 1960s, countries could fund their own projects. So, the EIB played a supporting role.

Changes in the 1970s

The economic downturn in Europe in the mid-1970s changed the EIB's role. It became harder for individual countries to fund their goals. In 1973, the United Kingdom, Ireland, and Denmark joined the EC. This led to the EIB getting more capital. With more money and new EU policies, the bank started its own regional lending policy in 1974.

The EIB expanded its lending to include industrial projects. It helped struggling industrial regions in the growing EC. The bank also benefited from a new fund, the European Regional Development Fund (ERDF), created in 1975. This fund helped regions develop and adapt to economic changes.

The EIB was the first EU group to build its own headquarters. The land on the Kirchberg plateau was bought in 1972.

Growth in the 1980s

In the 1980s, the EIB moved into its new headquarters. This building, called the West Building, was designed in a style called Brutalism. Construction started in 1974 and it opened in 1981.

In the 1980s, the EIB helped countries like Greece, Spain, and Portugal prepare to join the EC. Greece joined in 1981, and Spain and Portugal joined in 1986. In 1987, the bank started focusing more on loans for small businesses. It also supported new companies, telecommunications, and city transport.

After the Berlin Wall fell in 1989, the bank started funding projects in former Soviet countries. These included Poland, Romania, and Hungary. The EIB invested more in these countries as they prepared to join the European Union.

Expanding in the 1990s

In 1991, the EIB helped create the European Bank for Reconstruction and Development (EBRD). In 1993, it expanded its work to the Baltic countries and to Latin America and Asia. In 1994, the European Investment Fund (EIF) was created. Its logo shows a bridge, symbolizing the link between public and private money. In 1995, Austria, Finland, and Sweden joined the EIB.

The European Investment Bank made its first loan in euros in 1997. This was even before the new European currency officially started in 1999. In the same year, the bank got a new logo. It had a blue stripe for Europe and two grey shapes for its headquarters.

The 2000s and Beyond

In 2000, the EIB Group was formed. The European Investment Bank became the main owner of the EIF. Also in 2000, the Cotonou Agreement was signed. This agreement expanded the EIB's work with non-EU countries.

After the Lisbon Strategy in 2000, the EIB changed its goals. It continued to support infrastructure and EU policies. It also helped Europe become a high-tech and knowledge-based economy.

In 2004, the EIB started working in Russia, Belarus, Moldova, and Ukraine. In the same year, many new countries joined the European Union. These included the Czech Republic, Poland, and Hungary. Bulgaria and Romania joined in 2007, and Croatia in 2013.

From 2002, the EIB and the European Commission worked together. They focused on investments to fight and adapt to climate change. In 2007, the EIB issued the first Climate Awareness Bonds. These were the world's first Green Bonds. The money from these bonds went to projects for renewable energy and energy efficiency.

The East Building, opened in 2008, was the first building in Europe to get a "very good" environmental certification.

Recent Times (2010s and 2020s)

The European Fund for Strategic Investments was launched in 2014. This fund aimed to bring in hundreds of billions of euros for investments. In 2016, the EIB started the Economic Resilience Initiative. This helps regions outside Europe affected by the refugee crisis. It invests in growth, jobs, and infrastructure. In 2019, the bank agreed to stop funding fossil fuel projects by the end of 2021.

In 2020, the EIB announced its 'Climate Bank Roadmap 2021–2025'. This plan includes stopping funding for all projects that create a lot of carbon. The bank also made €200 billion available to help with the economic effects of the COVID-19 pandemic. It funded efforts to contain the virus and research for vaccines.

In 2024, there was a discussion about the EIB's rules. Its rules usually prevent it from investing in defense projects. More than half of the EU countries asked the EIB to change this policy.

How the EIB is Organized

The EIB has different departments that prepare and carry out decisions. These departments evaluate projects and manage risks. They also do economic studies and raise money. The EIB's structure is set out in the Treaty on the Functioning of the European Union (TFEU).

Who Runs the EIB?

The European Investment Bank has three main groups that make decisions:

• The Board of Governors: These are the Finance Ministers from each EU country. They set the overall direction for the EIB.
• The Board of Directors: This group oversees the main strategies.
• The Management Committee: This committee handles the daily operations.

The EIB's President leads the Management Committee meetings. The members of this committee are chosen by the Board of Governors. They serve for six years and can be reappointed. The President also leads the Board of Directors.

The EIB has internal and independent checks to make sure it works correctly. These include investigations, audits, and compliance checks. The bank also works with outside groups. These are the European Court of Auditors, the European Anti-Fraud Office (OLAF), and the European Ombudsman.

Being Accountable

The EIB has four official bodies that help it be accountable. These are the audit committee, the Board of Governors, the Board of Directors, and the Management Committee.

The audit committee is an independent group. It checks the bank's operations and financial records. Its six members are appointed for six years. They report directly to the Board of Governors. The audit committee also chooses the EIB's external auditors.

Other internal groups check how well the bank manages risks. They also give advice on the EIB's financial policies. The EIB Compliance Function makes sure all bank activities follow its rules. This includes fighting money laundering and promoting ethical behavior.

Outside Checks

The EIB also works with independent groups outside the bank. The European Court of Auditors can check how the EIB manages EU money. The EIB also works with the European Anti-Fraud Office (OLAF) to fight fraud. If EU citizens have concerns about an EIB project, they can contact the European Ombudsman.

Being Open (Transparency)

The EIB has a Complaints Mechanism team. This team looks into complaints about EIB projects. For example, complaints about environmental harm or safety issues. They check if the EIB followed its own rules. They also try to help solve problems between people and EIB projects.

The EIB also has a committee for complaints about project bidding. This committee handles issues with how contracts are given out for EIB-funded projects. The Fraud Investigations Division looks into fraud claims. It also trains staff to recognize fraud.

The bank publishes many documents. These include information about its role, how it's run, and its policies. Project information often includes a summary of the investment. It also shares environmental and social details. The EIB publishes yearly activity reports and statistical reports. To protect privacy, the EIB does not share personal data or business secrets. In 2014, the EIB created a public register. This helps people find its publications and request documents.

Talking to the Public

The EIB Complaints Mechanism holds events to inform the public. They explain how the mechanism works and how to make a complaint. The EIB also holds public meetings. This helps them be transparent and get advice from experts.

EIB Offices Around the World

The bank works in 140 countries. These include countries hoping to join the EU, and those in Africa, Asia, and Latin America.

EIB Leaders

Here are the Presidents of the EIB:

• Pietro Campilli (Italy): February 1958 – May 1959
• Paride Formentini [it] (Italy): June 1959 – September 1970
• Yves Le Portz (France): September 1970 – July 1984
• Ernst-Günther Bröder (Germany): August 1984 – March 1993
• Sir Brian Unwin (UK): April 1993 – December 1999
• Philippe Maystadt (Belgium): March 2000 – December 2011
• Werner Hoyer (Germany): January 2012 – January 2024
• 

  Nadia Calviño, president of the European Investment Bank as of 2024.
  Nadia Calviño (Spain): January 2024 – present

Dr. Werner Hoyer was the President of the European Investment Bank from 2012 to 2024. He was named European Banker of the Year in 2019. This was for his work in making Europe's economy stable and helping it grow. Under Hoyer, the EIB funded €150 billion in projects. These projects helped reduce greenhouse gas emissions.

Nadia Calviño became the President of the European Investment Bank in 2024. Spain nominated her for the role in 2023. Other countries like Germany and Belgium supported her. The Economic and Financial Affairs Council approved her in December 2023. Before this, Calviño was the First Deputy Prime Minister of Spain. She also served as the Minister of Economy.

EIB Publications and Media

The European Investment Bank publishes many reports, studies, and articles. These are for both experts and the general public. All publications are free on the EIB website. You can find them as PDFs, e-books, or online. Some printed copies are also available for free.

Yearly Reports

The EIB publishes annual reports. These include the Activity Report, Financial Report, and Investment Report. They cover the bank's main activities each year.

Surveys and Research

The European Investment Bank does research in different areas.

Blog and Podcasts

The bank's website also has blog articles, expert essays, and press releases. It also has podcasts. In 2019, its podcast series "A Dictionary of Finance" won an award. In 2020, another podcast, "Monster under the Bed," also won an award. The bank's "Climate Solutions" content series won a European Excellence Award in 2020.

See also

In Spanish: Banco Europeo de Inversiones para niños