A recent study by the European Investment Bank (EIB) Group underscores its pivotal role in enhancing the competitiveness and resilience of businesses across Europe amidst growing global competition and disrupted value chains.

The study, titled “EIB Group Support for EU Businesses,” reveals that the EIB Group fills crucial financing gaps in the European financial landscape, particularly benefiting small and medium-sized enterprises (SMEs) and mid-cap companies. These sectors, comprising two-thirds of Europe’s total employment, often struggle to secure financing from traditional bank-based systems, hindering their growth potential and innovation capabilities.

In 2023 alone, the EIB Group provided €31.1 billion in financing, including loans and guarantees, supporting approximately 400,000 SMEs and mid-caps. Notably, €15 billion of this funding came through the European Investment Fund (EIF).

Impact studies highlighted in the report demonstrate that businesses receiving EIB Group financing exhibit tangible benefits compared to their counterparts without such support. SMEs financed by the EIB Group experienced 5% higher employment and productivity levels, with even greater impacts observed in smaller and younger firms as well as in cohesion regions.

Moreover, firms benefiting from EIF-guaranteed loans saw significant improvements, including a reduction in bankruptcy rates by about a third and increased employment rates varying from 8% to 30%, depending on the region.

The EIB Group’s venture capital and venture debt products have been crucial for young European firms seeking financing for innovation. Start-ups backed by EIF-supported Venture Capital funds demonstrated higher success rates in acquisitions and initial public offerings compared to their peers.

Debora Revoltella, Director of Economics at the EIB, emphasized the transformative impact of the EIB Group’s targeted support, noting that supported firms consistently outperform their market peers after receiving funding. This underscores the EIB Group’s critical role in fostering investment, innovation, job creation, and productivity growth across Europe.

Furthermore, the study underscores the EIB Group’s countercyclical role, ensuring continued access to finance for viable businesses even during economic downturns when private credit availability diminishes. By addressing market failures effectively, the EIB Group contributes significantly to the EU’s objectives of enhancing sustainability, digitalization, and overall competitiveness.

In conclusion, the EIB Group’s comprehensive approach to supporting European businesses not only bridges financial gaps but also accelerates economic recovery and sustainability efforts, positioning Europe strongly in the global economic landscape.