Opinion Factsheet  

Working together for jobs and growth: The role of National and Regional Promotional Banks (NPBs) in the Investment Plan for Europe

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Opinion Number: CDR 5066/2015
Rapporteur: BANASZAK Adam
Commission: ECON
Status: Adopted
Date: 07/04/2016
 
Promotional banks at regional level must be taken into account in the Investment Plan for Europe.
The CoR is critical of the fact that the European Commission communication focuses purely on the role of the national level and encourages the creation of new national promotional banks alone.
Local and regional authorities should have a greater say in the choice of financial solutions. Failure to consider their opinion often results in support for investments, which are incompatible with regional operational programmes and strategies.
The CoR Opinion drew attention to the role of regional promotional banks in the implementation of the Investment Plan for Europe, next to the national ones, which were the only ones mentioned in the Communication of the European Commission. The May 2016 study of the European Parliament on promotional banks is in line with the CoR standpoint and examines both the role played by national promotional banks and by regional promotional banks in implementing EU SME financial instruments across EU-28, to examine how far they are already involved in implementing these instruments and in what capacity they help to strengthen access to finance for SMEs.
THE EUROPEAN COMMITTEE OF THE REGIONS

- is critical of the fact that while the formal definition of national promotional banks as a rule also encompasses regional banks, in practice the Commission communication focuses purely on the role of the national level and encourages the creation of new national promotional banks alone;

- draws the European Commission's attention to the considerable importance of giving local and regional authorities a greater say in the choice of financial solutions serving interests at local level. Failure to consider the position of local and regional authorities often results in support for investments which are incompatible with regional operational programmes and local strategies;

- notes the existence of significant development disparities between individual promotional systems at national level, resulting in a systemic deficit in countries and regions with a less developed culture of this type of banking; the outcome of all this could be that national promotional banks, might not always provide enough support for local authorities and enterprises. These banks should further decentralise the services they offer;

- takes the view that decisions on the creation of new institutions should be subject to an in-depth analysis on the appropriateness of creating new institutional structures, so as to avoid any unnecessary proliferation of red tape and waste of resources;

- points out that ex-post evaluation of the effectiveness of existing and newly created regional promotional banks should be long term in nature (10-15 years) given that the investment projects financed usually have a multiannual timeframe;

- stresses that the European Commission and the European Investment Bank should spell out the role of regional promotional banks and other financial institutions in the system of nascent investment platforms as a tool to accomplish the Investment Plan for Europe.

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Press release: Regional promotional banks can help make €315bn EU Investment Plan work

Promotional banks at the regional level must be taken into account in rolling out the Investment Plan for Europe argues an opinion by Adam Banaszak (PL/ECR) adopted at the European Committee of the Regions' plenary session. The Committee argues that local and regional authorities must be given a greater say deciding financial solutions and that ex-post evaluations should match the long-term nature of the projects.

 
07 Apr
 

Rapporteur's interview (in Polish) with the Polish Press Agency (PAP)

Mr Banaszak (Rapporteur) gave an interview to the Polish Press Agency on the adopted CoR Opinion on promotional banks.

 
07 Apr
 

Stakeholders' consultation on CoR up-coming Opinion: "Working together for jobs and growth: the role of National and Regional Promotional Banks in supporting the Investment Plan for Europe."

The meeting, chaired by the Rapporteur, Mr Adam Banaszak (ECR/PL) took place on 14 January 2016 and gathered participants representing, among others the European Long-Term Investors Association, European Association of Public Banks, European Investment Bank, European Commission as well as national and regional promotional banks.

 
14 Jan