EIB maintains “no bailout” stance

The European Financial Stability Facility (EFSF) was legally established by Euro area Member States on June 7. The objective of the EFSF is to issue bonds and provide loans in conjunction with the IMF to cover the financing needs of Euro area Member States in difficulty subject to conditionality. In this framework, the EIB is ready to provide treasury management services and administrative support to the EFSF through a service level contract. The EIB will not be a shareholder in the EFSF; it will not be managing the EFSF and it will not be involved in borrowing on behalf of the EFSF.

Euro area Member States agreed on May 10 to set up a special purpose vehicle, the “European Financial Stability Facility" (EFSF), to raise up to EUR 440 bn in support of euro zone Member States, should the need arise. The Eurogroup decided it would be set up under Luxembourg law and that the EFSF shareholders would be the 16 euro area Member States. In this framework, the EIB’s role is limited to providing technical assistance, for example on legal matters to the Commission and euro area Member States.

In its conclusions from the 2014-2020 EU Multiannual Financial Framework budget negotiations, the European Council concluded that “EIB involvement should be enhanced” in support of EU spending plans. In particular, the heads of state and government called for us to take an expanded advisory role. They want us to be involved early in the planning of EU-funded projects in order to maximise financial and organisational synergies.