Comments to the EC's plans to increase EIB operations and commence ERBD operations in North Africa

As a result of the recent revolts in the Southern Mediterranean, the European Commission proposed March 8 that the European Investment Bank and the European Bank for Reconstruction and Development be given leading roles in promoting democratisation and development in the region.

The Commission proposed that the EIB be allowed to lend an additional billion euros to the region over the next three years, adding up to six billion euros to be channelled through the EIB. Additionally, the Commission proposed that the mandate of the EBRD be expanded to allow the bank -- set up to support transition in post-socialist countries -- to lend to Mediterranean countries. Initially, the EBRD is envisaged to lend one billion euros to countries in North Africa.

Counter Balance and CEE Bankwatch Network call for an immediate investigation into the EIB financing to the Mediterranean so far, to examine whether the projects indeed brought development impacts and whether corrupted elites have benefited from the loans, and that no increase of capital for EIB investments for the region be allowed until such a review is completed. The two NGOs also argue that the EBRD's mandate should not be expanded for the foreseeable future, not until the bank has gained more experience in poverty reduction and gender issues and has demonstrated an ability to achieve an environmentally sustainable and socially just transitions.