The European Investment Bank is financing a series of projects in Italy under the European Growth Initiative, which was launched during Italy's six-month Presidency of the European Union in 2003.

More than EUR 1.6 billion is being advanced for both research, development and innovation (RDI), in keeping with the guidelines of the EU's 2000 Lisbon Strategy, and the development of infrastructure and Trans-European Networks.

In particular, the EIB has signed a EUR 60 million finance contract for the Trieste synchrotron; EUR 400 million will be earmarked for upgrading TIM's mobile telephony network; RDI activities have received EUR 100 million for small and medium-sized enterprises, based on a finance agreement concluded with SanPaolo IMI, and EUR 100 million has gone to Pirelli; EUR 1 billion has been granted for high-speed rail projects.

The loan for the laser synchrotron in Trieste concerns one of the most advanced priority sectors of European research infrastructure, which is a vital element in ensuring the European Union's scientific and technological excellence and its international competitiveness. The loan will serve to help construct the free electron laser (FEL), which will generate rays that enable molecular and atomic microscopy, leading to greater understanding of the properties of materials during chemical reactions and in biological and pharmacological processes. This project features on the Quick Start List of priority projects selected at the European Council meeting of Heads of State and Government. The work to be carried out is scheduled to begin by the end of the year and should be completed by the end of 2009. Approximately 55 new researchers and technical staff will be required for the experimental lines, instrumentation development and support input.

TIM mobile network is a project that will enable the gradual introduction (over three to four years) of third generation (UMTS) mobile telecommunications services in Italy's 100 largest cities and will extend the advanced version of the GSM network (GPRS and EDGE) almost nationwide (urban/rural areas, north/south), thus facilitating high-speed data transmission. This project too meets the objectives of the European Growth Initiative and will facilitate access to advanced digital technology services.

The EIB has continued to provide financial backing for implementation of Italy's high-speed rail programme and the development of its rail network. Over the years, the Bank has granted loans totalling some EUR 2.6 billion that have helped fund the Milan-Bologna, Bologna-Florence and Rome-Naples lines. The new EUR 1 billion loan will be deployed to complete work on the Milan-Naples line, which it is estimated will cost EUR 18 billion.

EIB operations traditionally place particular emphasis on the medium and long-term financing requirements of small and medium-sized enterprises (SMEs). In order to ensure that SMEs also have an appropriate share of RDI activities, a EUR 100 million agreement has been concluded with San Paolo IMI. Negotiations are already under way with Banca Intesa to finalise another credit line designed to support research, development and innovation in small and medium-sized enterprises.

The EIB has contributed EUR 100 million towards financing Pirelli's RDI programme, which provides for the development of innovative components, products and processes aimed at improving performance, increasing safety, lessening the environmental impact and optimising the efficiency of the production cycle. The project encompasses, for example, the development of innovative materials, fuel cells and environmental sensors. Research activity is being conducted in cooperation with universities and other industrial partners.