In 2005, the European Investment Bank's commitment in Italy will remain constant. The priorities will be: investment to improve the competitiveness and sustainable development of the productive sector (R&D and human capital); major infrastructure work contributing to the trans-European transport networks; and projects aimed at strengthening economic and social cohesion.

As part of their customary annual visit, EIB President Philippe Maystadt and Gerlando Genuardi, Vice-President, gave a presentation on the EIB's results and outlook in Italy to Domenico Siniscalco, Minister for the Economy and Finance and Italy's EIB Governor.

In 2005, in the transport sector, the Bank will finance projects that will improve efficiency and safety and lessen the impact on the environment. It aims to further integrate the various modes of transport in order to facilitate access to the major trans-European rail, road, sea and air networks. It will also back projects that successfully combine transport and urban mobility infrastructure.

President Maystadt stated: In Italy, the EIB intends to focus its activities increasingly on research, innovation and the development of human capital. Polytechnics, universities, research and innovation centres must become places that are familiar to us. Furthermore, later today at Bocconi University, I will have the honour of illustrating the Bank's activities outside the European Union.

He added: Obviously, we will maintain our commitment to furthering integration of the Single Market. In particular, the EIB will continue to support the preparation of the Brenner tunnel and the Turin-Lyon rail link - two projects of great importance for the European Union, which are crucial for Italy and for the balanced management of the Alpine region.

The EIB will provide financing to local authorities to bring regional development up to speed and back urban regeneration schemes. In conjunction with Italy's credit institutions, the Bank will indirectly support small and medium-scale projects aimed at bolstering the regional economy, such as urban infrastructure to reduce pollution, and investment in the health and education sector.

In order to boost industrial competitiveness, the Bank plans to support projects that foster business activity and cultivate strong markets. Particular emphasis will be placed on financial instruments for small and medium-sized enterprises and, in general, initiatives that increase the scientific and technological content of products and manufacturing processes.

In 2004, EIB lending in Italy amounted to EUR 6 billion. Some 55% of signatures concerned loans in support of projects located in the Mezzogiorno and the less well-off parts of northern central Italy. Infrastructure projects received around EUR 2.4 billion (40% of loans). Greater effectiveness was achieved through cooperation with the banking sector. In particular, around 20 new contracts were entered into to finance small and medium-sized enterprises.

With regard to trans-European networks, in the rail transport sector TAV received a loan of EUR 1 billion in association with ISPA; EUR 200 million went to the Florence-Bologna motorway upgrading project; and EUR 40 million was advanced for the extension of Bologna airport. As far as urban mobility projects are concerned, Rome's metropolitan transport system lines received EUR 360 million and EUR 20 million went to Ferrovie della Sardegna for the Cagliari tramway.

Lending in support of energy security, with its concomitant environmental impact mitigation measures, focused on increasing supply: EUR 300 million for natural gas extraction in the Adriatic and Ionian Seas and EUR 340 million for combined cycle natural gas-fired electricity generation in Calabria, Puglia, Abruzzo, Lombardy and Piedmont.

For upgrading and innovation in the field of telecommunications networks, EUR 400 million was granted for the development of third generation mobile phones and EUR 100 million will also be deployed in R&D activities, aimed at improving technology in areas such as energy transmission networks and telecommunications.

One of the most significant results was the 20% of total lending which went to R&D projects and to strengthen human capital, in line with the strategic guidelines laid down by the European Union in Lisbon in 2000. In this context, it should be noted that a cooperation agreement was initialled between the EIB and the Ministry for Education, Universities and Research.

On the basis of this cooperation agreement, a loan of EUR 60 million was granted for the Trieste synchrotron. This is one of the priority and most advanced sectors of Europe's research infrastructure network.