Commission backs creation of Euro-Mediterranean bank as an EIB subsidiary

The European Commission has expressed backing to the creation of a Euro-Mediterranean Bank (EMB) as a subsidiary to the European Investment Bank (EIB).

The commission says in a report the proposal is consistent with the principles of ownership and partnership with the Mediterranean partner countries at the heart of the 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.

Beyond supporting investment in infrastructure the EMB should play an important role in supporting the private sector development in the region and actively enhance the partnership with Mediterranean Countries.

The commission's report recommends a shift towards a strong private sector driven economy and putting in place the appropriate legal and institutional framework and an increased private sector culture in south Mediterranean countries.

This initiative aims to boost and complement the support already provided to Partner countries in order to respond to these needs.

The suggested approach is to create a majority-owned subsidiary of the European Investment Bank, which would build on, encompass and enhance the EIB's current activity in the region. The main role of the EMB would be to foster the development of the private sector and help finance infrastructure, especially in sectors which are being liberalized.