BAKU, Azerbaijan, May 3.Key investment priorities of the European Investment Bank include development of renewable energy resources and water security, particularly in the south, alongside building energy efficiency investments in the east and sustainable urban transport investments throughout the EU neighbourhood, Trend reports via EIB.
EIB Global targets these investment needs under the umbrella of European Neighbourhood Policy and specific regional policies, such as the New Agenda for the Mediterranean for the Southern Neighbourhood or the revised Eastern Partnership priorities. It stands ready to play a key role in the future reconstruction of Ukraine, and in the accession processes for Ukraine, Moldova and Georgia. This accession process will provide the countries with a framework for strengthening democratic institutions, rule of law and socioeconomic development. Previous rounds of enlargement have resulted in substantial economic stimulus as countries have adopted EU law, built a more stable investment climate and gradually integrated into the European Union’s single market.
Improving the business environment is a key challenge throughout the EU neighbourhood. According to a joint assessment by the EIB, the EBRD and the World Bank, businesses list access to finance, political instability and corruption as key concerns.6 Most firms in need of a loan had been either rejected or discouraged from applying. Trade integration, including access to know-how through participation in global value chains, is key to enhancing rates of innovation and productivity growth. Environmental sustainability poses another significant challenge for EU neighbourhood countries. Carbon emissions per unit of GDP remain relatively high, partly due to widespread fossil fuel subsidies, which have even increased in the wake of the pandemic.