EU neighbourhood

Six months after the Egyptian army deposed Egypt's first freely elected president, the weak democratic signals by the authorities are overshadowed by widespread repression. How can the European Bank for Reconstruction and Development possibly help under these circumstances? Or put differently: Will the limited benefits to the country's private sector from EBRD engagement really be enough to outweigh the harm done by the bank's support for an undemocratic regime?

On December 18 the EBRD board of directors approved a loan of USD 50 million to finance a project aimed at the expansion of oil operations and reducing gas flaring in Egypt. Yet the tenuous political situation in the country continues to raise concerns about the bank’s ability to make a positive contribution towards the democratic process, and whether it should be investing there at all.

At a closer look the EBRD's new energy strategy, complimented for the restrictions it places on coal lending, reveals a shocking lack of operational knowledge to implement the ambitions outlined in its executive summary.

On November 28, the state nuclear regulator of Ukraine (SNRIU) allowed the continued operation of unit 1 of the South Ukrainian nuclear power plant (SUNPP-1) until December 2, 2023 - 10 years beyond its technically designed lifetime. The decision not only constitutes a breach of national regulation, but also disregards an unresolved case of non-compliance with the UN Espoo Convention. All this while Energoatom is in an increasingly tight financial situation.

Is the EBRD deliberately dragging its feet on publishing investigation reports on large hydropower plants in Georgia, Macedonia and Croatia?

Adding to the ongoing febrile atmosphere in the country, Egypt's military-backed authorities just yesterday passed a controversial new law that imposes draconian restrictions on public protest. Meanwhile, in recent weeks the European Bank for Reconstruction and Development has reconfirmed its intention to remain active in the country - despite a number of serious doubts still hanging over its potential impact.