- First ever virtual meeting of Heads of “5+1” group call for European measures to complement national ones
- The informal “5+1” group includes the EIB plus the five largest European National Promotional Banks from France (CDC-BPI), Germany (KfW), Italy (CDP), Poland (BGK) and Spain (ICO)
European development institutions have a common mission: to support the economy and to contribute to sustainable growth and jobs. This mission is even more urgent in the current crisis.
Given the enormous challenge posed by Covid-19, European governments and institutions must mobilise resources at unprecedented levels and deploy them effectively. European solidarity, built over many years of collaboration, is instrumental to executing an effective response. With that aim, the chief executives of national development banks from France (CDC-BPI), Germany (KfW), Italy (CDP), Poland (BGK) and Spain (ICO), together with the president of the European Investment Bank, have discussed responses to the economic consequences of the Covid-19 crisis.
The following statement was agreed:
The discussions focused on the promising results of the first measures taken by Member States and at the EU level, learning from each other and ensuring the complementarity of different programmes. Together with all the other national promotional banks and institutions (NPBIs), we are committed to supporting economies with all the resources at our disposal.
We have worked closely together in the past to address crises by supporting the economy and mitigating downturns. We are determined to act together once again. It is vital for our economies that European financing tools complement national ones. It is also crucial that every euro gets to where it is needed – as quickly as possible.
We should focus small businesses and mid-caps, which urgently need liquidity and working capital to survive the lock-down. Many small businesses are already benefitting from the emergency measures taken by national governments and institutions: a moratorium on existing loan payments or other liabilities, loan guarantees of more than 80% in some cases, and new tools for supporting the sectors most impacted by the shutdown.
Our mission is also to provide a long-term vision for European economies. Long-term investments will be at the heart of the economic recovery, strengthening employment, innovation and sustainability.
In addition to transport, tourism, and research and development, several other economic areas – social infrastructure (health, education, affordable housing), digital infrastructure and energy infrastructure – will need substantial investment to remain competitive. These investments will fortify the European economy, increasing its resilience and relevance. The European Commission's InvestEU Programme is a major element in this effort, together with other national and EU policy measures.
Following the exchange among our development banks, we have committed to:
- Further develop our cooperation and focus on synergies;
- Explore possible common initiatives;
- Explore the need for new tools along with the existing ones, notably at European level.
We believe that Europe is strong enough to overcome this crisis. We have shown our robustness and commitment to the economic recovery. We will continue to coordinate our initiatives going forward. Our goal is to help Europe emerge from this crisis stronger and more united than before.
The informal “5+1” group includes the five larger National Promotional Institutions in Europe - from France (CDC-BPI), Germany (KfW), Italy (CDP), Poland (BGK) and Spain (ICO) – and the European Investment Bank. The last “Heads of 5+1” meeting was hosted by the EIB in Luxembourg in June 2019, and a key element was the launch of the “EUR 10bn Joint Initiative on Circular Economy” (JICE). See here. Leaders of the group meet regularly to coordinate activities and launch common undertakings.