In 2023, the European Investment Fund (EIF) committed EUR 6.8 billion for credit guarantees, venture capital, and private equity investments in cohesion regions, representing 49% of its total commitments in the European Union. The top five beneficiary countries are Romania, Bulgaria, Poland, France, and Italy, announced the European Investment Bank Group (EIB), of which the Fund is a part. The EIB published its third annual report, titled “EIB Group Activities in EU Cohesion Regions.”
In 2023, the EIB Group dedicated EUR 36.2 billion to projects in the less developed regions of the European Union, known as “cohesion regions.” This amount represents nearly half (47%) of the EIB Group’s total loans and investments in the EU for the last year. EIB loans for cohesion policy in 2023 alone amounted to EUR 29.8 billion, or 45.1% of the EU’s planned liabilities, thus exceeding the 42% target.
“Social and territorial cohesion is a core part of the EIB Group’s mission and is among our top strategic priorities,” said Group President Nadia Calvino.
The projects signed by the EIB in 2023 are expected to provide:
- Access to better healthcare for over five million people.
- Supply of renewable energy to over six million households.
- Access to 5G services for over six million new subscribers.
- The creation of a significant number of direct and indirect jobs.
EIF commitments for credit guarantees, venture capital, and private equity investments in convergence regions in 2023 amount to EUR 6.8 billion, representing 49% of EIF’s total commitments in the EU. The top five beneficiary countries are Romania, Bulgaria, Poland, France, and Italy.
“Achieving competitiveness and convergence in the EU is essential for building an inclusive future and a stronger European Union on the global stage,” said EIF Chief Executive Marjut Falkstead. “In 2023, we provided extensive support to small businesses in many developing regions across Europe, far exceeding our targets and also making a significant contribution to building local financial ecosystems,” she added.
The European Union divides regions into three categories based on economic development: less developed, in transition, and more developed. In 2023, the EIB granted EUR 17.2 billion in loans to less developed regions, representing 26% of the total funds allocated in the EU, surpassing the bank’s high-performance benchmark set at 21%.
All EU countries, except Luxembourg, have convergence regions, including transition regions, and investments in these areas are crucial for reaching their full potential. Although the EU has made significant progress nationally in convergence, there are considerable variations in regional outcomes within each country. Support for cohesion policy is one of the top eight priorities of the EIB Group, according to the 2024-2027 Strategic Roadmap, unanimously adopted in June by the EU financing department’s shareholders.
