With potentially devastating impacts on natural habitats, the European Bank for Reconstruction and Development has so far offered no real commitment to environmental protection in its ambiguous decisions on two hydropower plants in Croatia and Macedonia.

The Czech renewable energy industry last week received a strong blow from our very own Parliament which approved measures that will likely smother the sector in a bill ironically entitled the „Renewable energy sources support bill.”

Today Bankwatch member group Zelena akcija/Friends of the Earth - Croatia held an action today outside the offices of the EBRD in Zagreb, calling on the bank not to approve a planned loan of up to EUR 123 million for the Ombla hydropower plant project. You can see some images from the demo here.

As the eurozone crisis continues to unfold, lending from international financial institutions to the banking sector must be held to the task of supporting the most vulnerable - especially the SMEs in CEE - or it will continue to perform largely unsuccessful and unchecked as it has during the crisis to date.

The proper financial management of EU funds is important to avoid fraud and illegitimate spending. Yet more important is the quality of the funded projects.