Council Decision (EU) 2025/504 of 11 March 2025

What it is

PURPOSE: request from the European Investment Bank (EIB) to launch the Article 308 of the TFEU procedure in order to amend the EIB's Statute. Having regard to Article 308 of the Treaty on the Functioning of the European Union (TFEU), the European Investment Bank (EIB) may request the Council to amend the Statute by special legislative procedure and after consulting the European Parliament and the Commission, may amend the Statute of the Bank . Article 16.5 of the Statute of the EIB establishing a limit on the total signed debt operations (Gearing Ratio), a limit on disbursed equity operations and a specific allocation of reserve for special activities. There is a unanimous call for the EIB Group to play an even more important role to close Europe´s investment gap, to strengthen Europe’s productivity, social and territorial cohesion, climate action, peace, security and open strategic autonomy, to respond to global challenges and reinforce its voice in the new geopolitical context. The European Parliament adopted by 510 votes to 105, with 27 abstentions, following a special legislative procedure (consultation), a legislative resolution on the draft Council decision on amendment of the EIB's Statute. As a reminder, the European Investment Bank (EIB) submitted to the Council a request to amend the first subparagraph of Article 16, paragraph 5 of its Statute. The aim of the targeted amendment proposed by the EIB is to implement a recommendation stemming from the G20 commissioned review of Multilateral Development Banks’ (MDB) capital adequacy frameworks, namely to remove statutory lending limits from their statutes. The underlying intention of the change is to give the relevant governing bodies of MDB full authority over risk management metrics and leverage metrics. As per the proposed change, the maximum 250 % gearing ratio in the EIB statute should be replaced by a unanimous decision by the Board of Governors. According to the EIB Group, the current maximum gearing ratio of 250 % would severely constrain the 2024-27 Strategic Roadmap. In addition, it would neither take into account the quality of the EIB portfolio nor credit enhancements, such as EU budget guarantees. Lastly, the ratio would especially penalise equity investments. PURPOSE: to amend the statutes of the European Investment Bank (EIB). LEGISLATIVE ACT: Council Decision (EU) 2025/504 amending Protocol No 5 on the Statute of the European Investment Bank. CONTENT: the aim of the targeted amendment to the EIB Statute is to implement a recommendation arising from the G20-requested review of the capital adequacy frameworks of multilateral development banks (MDBs), namely to remove statutory lending limits from their statutes. The underlying intention of the amendment is to give the empowered governing bodies of MDBs full competence over risk management indicators and leverage indicators. The amendment provides for the replacement of the maximum capital leverage ratio limit in the EIB Statute, set at 250%, with a unanimous decision of the Board of Governors. On 21 June 2024, the Board of Governors of the EIB unanimously decided to increase the gearing ratio to 290 %, in order to enable…

Official title: Council Decision (EU) 2025/504 of 11 March 2025 amending Protocol No 5 on the Statute of the European Investment Bank