Brussels, February 7th. More than 30 European NGOs from 16 countries have launched a new campaign called NO REFORM - NO MONEY, designed to convince EU decision makers to reform the EIB this year. "Because the EIB is seeking a large capital increase in June 2002, each EU member state has a clear opportunity to insist on basic reforms that have been ignored for the last several years," said Magda Stoczkiewicz, who is coordinating the campaign on behalf of the CEE Bankwatch Network and Friends of the Earth International.

NGOs are calling for changes at the EIB in five main areas:


- Public Access To Information
- Proper Environmental Standards
- Honoring Its Development Mandate
- Better Supervision by EU Institutions
- Staffing and Role of the Board


In each of these areas the EIB lags far behind other international financial institutions (IFIs) such as the World Bank and EBRD. The issue of appropriate staff size to address environmental, development and transparency issues cuts across all areas. Now the EIB has only one environmental expert on staff, yet the EIB annual processes more lending that the World Bank, with hundreds of environmental, social and development specialists.

The 15 EU member states, which own the EIB and have the legal responsibility of governing it, are being asked to condition the replenishment on the proposed reforms. The coalition of NGOs has prepared a detailed rationale of the needed reforms, along with several new case studies showing the EIB’s deficiencies that include the Bratislava Bridge in Slovakia, the Chad-Cameroon Pipeline Project, the Palestine Water Project, and the Italian Oil Fields Project. In each of these cases, the EIB decision was made without proper environmental assessments or public consultation. These briefing packets are being sent to the EIB’s full Board of Governors, representing the 15 Member States through their Ministers of Finance, Economic Affairs or the Treasury, as well as its Board of Directors, and to members of the European Parliament and the Commission. Every EU country is being asked to condition its approval of the capital increase on demonstrable progress concerning key reforms.

"Ironically, the EIB is also presenting a major press conference today, which won’t announce solutions to these crucial issues," said Jaroslava Calajacomo from Campagna per la Riforma della Banca Mondiale. "The EIB should be fostering truly sustainable development in the places they operate, in ways that do not harm either the environment or the local people while at the same time fully respecting European Commission directives and policies and involving the public. But our case studies show that the opposite is the operating reality."

"I've been working on EIB-related issues for CEE Bankwatch during the past five years," stated Ms. Stoczkiewicz. "In the last two years things have started to change, but it is more like the facade of a house being painted when the rooms inside are still dirty and the roof is leaking. NGOs are insisting on the need for real changes. The day of a public relations strategy to paper over needed reforms is over," she added.

"EIB activities have expanded enormously both inside and beyond the EU," said Klaus Schilder from WEED, Germany. "We have to make sure that the EIB has clear environmental and social standards, as well as appropriate safeguard policies in place to deal with the realities in countries outside the EU."

"Presently the EIB is unaccountable either to European Institutions such as the Commission and Parliament, or to citizens and parliaments of the member states that sit on its board," observed Calajacomo, "The EIB lacks adequate supervision and monitoring of the projects it finances. The momentum for change needs to come from the Member States who own the EIB. That is why we in Italy are working to convince the government of the urgent need for these reforms."

In conclusion, James Barnes observed: "Often a pending capital replenishment at other IFIs has provided the chance to obtain basic improvements. It is equally appropriate in this case for the EIB, which has been able to get away with a scandalous disregard for fundamental transparency and accountability for far too long." Barnes is a counselor for Friends of the Earth International, and has worked on EIB issues with Bankwatch for the past six years.

For more information:

Magda Stoczkiewicz: Tel: 32-2-542-0180; Mobile: 31-6295-93877
magdas@foeeurope.org

Jaroslava Calajacomo: Tel: 39 06 78 26 855
jaro@crbm.org

Klaus Schilder: Tel: 49 177 43 41 642
klaus.schilder@weedbonn.org

James Barnes: Tel: 33-5-5381-1749; Mobile: 33-6-7130-4117
james.barnes@wanadoo.fr


Campaign materials are posted at: www.bankwatch.org

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