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28 february 2002
cee bankwatch network
friends of the earth international
more instead of better: ngos concerned
about european investment bank expansion
without reform
Brussels- Environmental NGOs are deeply
concerned about the new Commission proposal
to create a "Euro-Mediterranean Bank (EMB)"
as an EIB (European Investment Bank)
subsidiary.
Yesterday, the Commission adopted a Report
to the Council proposing the creation of a
Euro-Mediterranean Bank (EMB) as an EIB
subsidiary. The Commission says its proposal
is consistent with the principles of
ownership and partnership with the
Mediterranean partner countries at the heart
of Euro-Mediterranean policy - while at the
same time ensuring a realistic and
operational approach that can deliver results
in terms of increased investment and growth
as soon as possible.
Indeed, if the ultimate goal is to achieve
increased investment in that region at the
cost of environmental and social
performance, the EIB is the right choice to
be the leading party," says Magda
Stoczkiewicz, coordinator of the EIB: NO
REFORM - NO MONEY! campaign. "It is
worrying, however, that the Commission,
bound by the EC Treaty and its provisions
on sustainable development, is so
uncritical of the EIB's performance that it
is even extending its mandate."
On February 7, 2002, NGOs launched a new
campaign entitled, EIB: NO REFORM - NO MONEY!
linking the EIB's request for capital
increase with necessary reforms in the areas
of:
-
public access to information;
-
environmental standards;
-
development mandate;
-
supervision by EU institutions.
NGOs claim that the EIB lags far behind
its sister international financial
institutions (such as the World Bank and the
EBRD) in terms of its transparency,
accountability and the ways in which it
addresses environmental and social issues in
its work.
EIB operations show a lack of professional
accountability and oversight in managing
projects. This is due largely to (1) the
"rubber stamp" approval process of its
organisational hierarchy, (2) its relatively
small staff, who have no adequate
environmental expertise (while this enables
low-cost loans, it precludes professional
environmental oversight), and (3) its
increasing operations outside of the original
EU charter, where it is largely exempt from
the overall policy direction of the European
Union.
As a comment to the Commission proposal,
Stoczkiewicz adds, "For the EIB there is no
incentive to change if it is constantly given
new mandates and more money. For our common
benefit, we must reform the Methuselah before
we start feeding him even more!"
The EIB: NO REFORM - NO MONEY! campaign is
coordinated jointly by the CEE Bankwatch
Network and Friends of the Earth
International. More information is available
at
www.bankwatch.org/eibreform
.
For further information contact: Magda
Stoczkiewicz, +31 20 622 13 69
magdas@foeeurope.org
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