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2 EIB COFINANCING OF STRUCTURAL FUNDS The role of the EIB

3 Partner in strengthening Economic & Social Cohesion Title XVII of the Treaty : Community actions to strengthen economic and social cohesion are supported through the Structural Funds, the Cohesion Fund and the EIB Art 267 a) of the Treaty : The Bank shall facilitate the financing of projects for developing less- developed regions in all sectors of the economy Translated into the Framework regulation N° 1260/99 A priority mission assigned to the Bank

4 Framework Regulation N° 1260/1999 Art. 1 : The Structural Funds, the EIB and the other existing [EU] financial instruments shall each contribute in appropriate fashion to the attainment of the following three objectives [i.e : Objectives 1, 2 and 3] Art. 10 : … to maximise the stimulus provided by budget resources…the Community assistance provided in form of grants may be combined … with loans.. This combination may be determined in conjunction with the EIB when the Community support framework … is being drawn up. Art 15 : the EIB may be involved in the preparation of the CSF Art. 26 (Major projects) : The Commission shall appraise the project, consulting the EIB if necessary… Art. 35 : A representative…of the EIB shall participate in the work of the Monitoring Committee in an advisory capacity A tri-partite collaboration : MS, EC, EIB

5 How it is implemented EIB participates in the programming phase of the CSF : not to reduce EU grants allocations but to complement them with the objective of optimizing EU intervention by grants and loans EIB cofinances projects (or groups of projects) with the Structural Funds during CSF implementation EIB can also finance directly part of the contribution of national/regional authorities in CSF or OP (Programme lending) EIB appraises, for the benefit of the Commission, projects submitted for grants (major ERDF projects, Cohesion Fund or ISPA projects) A complementary role

6 Lithuania 297 Latvia 331 Czech Rep Slovak Rep Bulgaria 1076 Romania 2724 Poland 5991 Hungary 2690 Slovenia 1225 FINANCING IN CENTRAL EUROPE EUR 19.7 billion ( ) From transition to pre-accession Estonia 250

7 Cofinancing with the Structural Funds 2000 – 2002 Combining grants and loans In the Union : 6.4 bn In Candidate Countries : 2.0 bn In the Union: 16% In Candidate Countries: 22% Average: 17% Cofinancing in percentage of EIB lending to EU structural actions (average 2000 – 2002)

8 Projects evaluations for DG REGIO From mid-2000 : 50 appraisals for Cohesion Fund projects 23 for ERDF major projects 24 for ISPA projects A co-operation agreement signed with DG REGIO