00:00 It's the biggest multilateral lender in the world, the European Investment Bank, providing
00:05 funds for green projects, but not for fossil fuel investments, financing the reconstruction
00:11 of Ukraine and supporting innovation and competitiveness in Europe.
00:16 That's quite an agenda.
00:18 We spoke to the new president of the European Investment Bank, former Spanish minister Natia
00:22 Calvino.
00:24 That's next on the Global Conversation.
00:29 Thank you, Madam President, for your time today and welcome to the Global Conversation.
00:34 Thank you very much for having me.
00:36 So you just started your six-year term a few weeks ago and already have a lot on your plate.
00:42 I want to mention one priority to begin with, Ukrainian reconstruction.
00:48 Obviously, a monumental task that requires strong European commitments.
00:54 I wonder how this is going to be managed.
00:57 How do you fund projects that could still be destroyed by war?
01:02 Well, the bank has been active in Ukraine for a long time and actually since the war
01:08 started we have already invested 2 billion euros in Ukraine.
01:11 It's very good news that last week leaders agreed to reinforce the Ukraine facility.
01:16 That's also going to give more guarantees and more firepower to the European Investment
01:20 Bank Group to continue to support Ukraine now and invest in the reconstruction once
01:25 the war is over, as soon as possible, I hope.
01:28 The EIB is also known for many people as the Green Bank.
01:33 So tell us a little about the projects, the industries, the numbers and are investors
01:40 still excited?
01:41 Absolutely.
01:42 Well, I mean, last year we invested 49 billion euros in the green transition.
01:48 So I think it's very good and it's really a good description of the bank to call us
01:55 the climate bank.
01:56 And we have consolidated our brand and we are financing the whole cycle that has to
02:02 do with the green transition from R&D and deployment of disruptive technologies to reinforcement
02:09 of the grid, also decarbonization of heavy industry, energy efficiency, the net zero
02:15 technologies.
02:16 And so I think that that is the right way to support the transition.
02:21 What happens now is that, for instance, big car makers are delaying the rollout of new
02:26 electric models, farmers protesting environmental regulations and populists ignoring climate
02:35 policy are on the rise.
02:38 Is that a real danger for the Green Deal?
02:41 We are in a transition and changes are disruptive and they impose costs.
02:47 And that is why the public sector, politicians, but also public institutions such as the European
02:53 Investment Bank Group, we need to accompany those sectors.
02:56 We need to support the agricultural sector in undertaking the necessary investments.
03:02 We need to support heavy industry to make these adjustments.
03:05 We need citizens to have access to affordable green technologies.
03:10 And it is our duty to explain things and to accompany our economies and societies to close
03:16 the investment gap and to make sure that we seize the opportunities of these twin green
03:22 and digital transitions.
03:24 The EIB's investment report shows that European companies have increased investment in things
03:32 like innovation, energy efficiency and supply chain diversification.
03:38 That's good.
03:39 However, the report also warns that there is a risk that corporate Europe is going to
03:46 be divided going forward.
03:48 What is the issue here?
03:49 It is clear that companies have to think twice about undertaking some of the necessary investments.
03:55 There is very high uncertainty, geopolitical tension that's also limiting the appetite,
04:01 the risk appetite of corporations.
04:03 And that is why the EIB has an important role in de-risking investments.
04:08 When we invest in green hydrogen or a circular battery factory, we are really making this
04:16 project possible because we bring with us other public investors, but also private investors
04:22 that see the role of the bank as a very important element of de-risking, but also technical
04:27 analysis.
04:28 We rubber stamp to a certain extent that this is a viable project, this is a good project,
04:33 and that is mobilizing private investment.
04:37 You mentioned geopolitical tensions.
04:39 A lot of people in Brussels and in EU capitals fear the return of Donald Trump to the White
04:44 House.
04:45 Are you among them?
04:47 2024 is an important year from the perspective that billions of citizens around the world
04:53 are going to go to the polls, are going to vote and decide what future they want for
05:00 their lives and for their children, including the EU.
05:03 We have the European elections coming up soon.
05:06 And all these elections are certainly going to have a large impact in our destinies.
05:11 But most importantly, I think the European elections should lead to a strong unity of
05:16 Europeans and a solid commitment to remain together and to respond together, united and
05:23 in a determined manner to the challenges around us, because that has proven to be, throughout
05:28 history, the right way forward.
05:30 So now that you have elegantly pivoted to the European elections, you're not concerned
05:35 about the outcome of the US presidential election?
05:38 I'd really, I'd rather stay out of any political considerations as president of the European
05:44 Investment Bank.
05:45 OK.
05:46 One key policy in Brussels and in Europe is competitiveness.
05:52 And let me bring this up in connection with a good old goodie of EU policy ambitions with
06:00 a long shelf life, and that is the capital market union.
06:05 A few days ago, council and parliament have agreed on a review of market infrastructure
06:10 rules.
06:11 Are you confident that this could come to a conclusion this year?
06:15 This is an area where I've been working for many years.
06:19 I have a long experience in dealing with financial regulation and capital markets union was one
06:24 of our top priorities already 15 years ago, 10 years ago.
06:29 And so I really hope that in the next mandate, we will be able to have an updated legal framework
06:35 in this regard.
06:36 But in the meantime, as president of the European Investment Bank Group, I have already launched
06:40 a number of work streams in the house to see how we can be pioneers of some of the financial
06:46 instruments that can form the building blocks of these actual capital markets union.
06:51 One more.
06:52 I mentioned earlier, you just started your term here at the EIB in Luxembourg.
06:58 Where do you want Europe to be in six years?
07:01 Well, that's a very that's a difficult question to reply, because who knows what can happen
07:06 in the coming six years?
07:08 Just looking back and thinking what we've been through with the pandemic, the war, inflation.
07:15 I really hope that going forward, we are able to respond in an efficient manner to the challenges
07:22 that will surely come our way.
07:24 I hope that we have restored peace on our borders, and that we can, you know, looking
07:30 back, think, see that this was only a short period where so much war and destruction was
07:36 surrounding the union.
07:38 And I hope that we will see also a strongly united, a deeper, more integrated economy
07:44 and society within our European Union.
07:47 And of course, prosperity, welfare, happiness for our kids and grandkids.
07:53 That's a wonderful conclusion, Madam President.
07:55 Thank you so much for a great global conversation.
07:57 Lovely to talk to you.
07:58 Thank you.
07:58 (whooshing)
