26/10/20151 European Investment Bank EIB Contribution to the EU Strategy for the Danube Region Ruse, 10 May 2010

26/10/20152 European Investment Bank The EIB’s Priority Objectives Within the Union: Cohesion and convergence Small and medium-sized enterprises (SMEs) Environmental sustainability Competitive knowledge economy Trans-European Networks (TENs) Sustainable, competitive and secure energy EIB’s six priority lending objectives overlap with the three main thematic areas of the Danube Strategy: Connectivity and communication systems Environmental protection Economic and social development

26/10/20153 European Investment Bank EIB Lending in the Danube Region in ¹ Länder of Baden-Württemberg and Bavaria

26/10/20154 European Investment Bank EIB Lending in Danube Region Member States Signatures: EUR 6.7bn in 2008 and EUR 9.8bn in 2009 EIB borrowers are: (i) Public sector entities: Sovereign MSs, regions, municipalities and other sub-sovereign public entities (ii) Private sector entities: leading corporates in all countries requiring financing for capex and R&D investments (iii) Financial institutions as intermediaries for EIB’s Loans dedicated to SMEs and Mid-Cap Loans

26/10/20155 European Investment Bank Instruments Leverage – lending, expertise and partnership Co-financing with EU Structural Funds – funding the national or regional contribution ERDF, Cohesion Fund, ESF Individual (large) projects Sectoral or regional operational programmes Entire NSRF Financial Engineering JESSICA JEREMIE RSFF, LGTT TAC (Technical Advisory + Cooperation) JASPERS Other TAC by EIB

26/10/20156 European Investment Bank EIB in line with the markets demands In Austria and Germany, a large portion of EIB lending goes to the private sector (knowledge economy and RDI) In Bulgaria, the Czech Republic, Hungary, Slovakia, and Romania, the main emphasis is on (i) public sector loans to meet national co-financing requirements for the implementation of EU Funds supported projects and (ii) major capital expenditure projects to enhance Cohesion and Convergence

26/10/20157 European Investment Bank Project examples: TEN-T railway corridors (AUSTRIA) EUR 200m loan for the construction of the new main railway station in Vienna, at the junction of Priority TEN- T railway corridors SOFIA MUNICIPAL INFRASTRUCTURE (BULGARIA) EUR 43.5m for the rehabilitation of 3 of the main traffic nodes of Sofia’s road network CROSS-BORDER PROJECTS aiming at financing small and medium-scale projects carried out by SMEs in the Danube region

26/10/20158 European Investment Bank Co-financing with EU Structural Funds Co-financing with EU Structural Funds – funding the national or regional contribution In the last years, the EIB has signed a number of Structural Programme Loans in Bulgaria, the Czech Republic, Hungary, Romania and Slovakia to co-finance Operational Programmes Examples: NSRF Co-financing Facility (Romania) for EUR 1.0bn- signed in 2008: supports the implementation of Romania’s National Strategic Reference Framework. A similar operation was signed in Bulgaria in 2007 (EUR 700m).

26/10/20159 European Investment Bank JASPERS in the Danube Region Summary of JASPERS assignments in the Danube Region

26/10/ European Investment Bank Lending to all countries in WB on the basis of the “Pre-accession mandate” (EU budget guarantee) (EUR 8.7bn over ) and at EIB’s own risk under the “Pre-Accession” Facility (EUR 5.5bn over ) Objective: foster economic development and integration process in the EU Sector focus: modernisation and upgrading of national infrastructure, diversified support to human capital, SMEs, local authorities Total lending in 2009: EUR 1.6bn Major WB borrower: Republic of Serbia (EUR 896m in 2009) EIB Lending in Danube Region to Western Balkans States

26/10/ European Investment Bank EIB Financing in the EU’s Eastern Neighbours Lending to Ukraine, Moldova, Armenia, Azerbaijan, Georgia and Russia under EU mandate (EUR 3.7bn) and under the EIB Eastern Partners Facility (EUR 1.5bn) Objective: priority to projects on extended major Trans European Network axes, projects with cross-border implications for one or more Member States and major projects favouring regional integration through increased connectivity. For energy, focus on strategic energy supply and energy transport projects. But also environment, SMEs EIB Lending in Danube Region to Moldova and Ukraine

26/10/ European Investment Bank Co-operation on Macro Regional Strategies The EIB has participated already in a EU Strategy for macro-regions: EU Baltic Sea Strategy EIB was present as from the development stage of the EU Strategy for the BSR Close co-operation with Commission EIB worked in close co-operation with other IFIs (in particular Nordic Investment Bank) and organisations in the macro region 2009: EUR 11.5bn Major BSS borrower: Poland (EUR 4.8bn in 2009)

26/10/ European Investment Bank Issues for an efficient implementation of the Danube Strategy Investments in infrastructure which move to business development, entrepreneurship and support to knowledge economy Importance of strengthening institutional capability: from projects origination to implementation and of developing an integrated approach addressing financial and non-financial needs Priority to be given to cross-border projects and interconnectivity Importance of promoting cooperation (between funding sources, MS and non-MS), and exchange of information and best practices Importance of prioritising investment needs and avoiding fragmentation The direct participation through the regional offices

26/10/ European Investment Bank Focus on environment and sustainable production and consumption of natural resources Proper integration of the territorial dimension Support to cross-border projects and inter-connection within the Danube region, with a specific attention to linking MS and non-MS countries Focus on supporting economic competitiveness and accession process for Candidate countries and potential Candidate countries Emphasis on strengthening cooperation between IFIs for lending in non-MS and on supporting the emergence of public private partnerships. Priorities for a successful Danube Strategy

26/10/ European Investment Bank For more information… Milena Messori Head of EIB Bucharest Office Tel Fax