Europe’s economy is picking up. According to the latest European Commission data, economic growth in the EU will increase by 4.8% this year and 4.5% in 2022. As the fall-off from the COVID-19 pandemic recedes, national and European measures are not only supporting Member States to recover, but to also face challenges from the green and digital transitions. Since September 2021, 18 Member States’ National Recovery and Resilience plans have been approved by the Council, getting the green light to use newly created recovery funds.
Yet the impact of the pandemic has not only warranted immediate recovery support but has also hardened existing problems and deepened investment gaps. The financial dimensions of these challenges are huge and cannot be solved by public funding alone. It is essential to leverage public money and make additional private funds available to the real economy.
How did promotional banks react during the crisis (emergency measures as well as long-term support)? What did KfW and the EIB Group as public financial institutions and the European Commission as a European institution do to support the economy of Member States? How can institutions make sure the transition is sustainable? How will KfW and the EIB Group support the private sector in the recovery? How will the European Commission address this topic? What are the future challenges ahead of us?
Read more on KfW’s business and the EIB’s COVID-19 response.