00:00It's been a bit of a different Davos. I think there was a lot of anxiousness from a lot of European leaders and a lot of European businesses about what happens when Donald Trump spoke yesterday. Does it change anything in terms of the EIB for example how much you spend on defense to match that 5 percent for for for example what countries give to NATO. Well we've already started our change you know a couple of years ago and 2025 has already already been a sea change if I may call it that way or describe it that way because we already reached
00:29five percent of our activities inside the EU devoted to security and defense. We are already financing a number of flagship projects large case projects including a military campus in Lithuania research programs. So I think that we're on track to be to give to provide a very strong contribution to Europe's security and defense capabilities. What happens next in terms of how Europe can organize itself and does it change your focus for the EIB.
00:57Well I think that what's going on is really a change of the world order. I think Mark Carney was very right on spot when he described what we're living and that makes events like Davos more important than ever because we need to have fora to debate to talk to each other to try to find compromises because at the end of the day the approach of the European Union must be pragmatic when we can but firm when we must.
01:22And I think that we are at one of those turning points in the current week. You were part of the Spanish government of course before joining the EIB. Do you think that leaders and Spain should join France in trying to maybe activate the anti-cohertion instrument against Donald Trump.
01:38I think this is not a trade issue. It's not about tariffs. I think that also in the last 12 months we've become used to tariffs coming in going out. You know 24 hours is not enough to keep track.
01:50So I think that what we need is to see how to engage how to reorient the strategic relationship that we have with the United States which is obviously our most important partner from many points of view.
02:03And and so it goes beyond I think the discussion on one or another trade instrument.
02:08What's the role that the EIB can do in European European defense if NATO acts no longer as a shared security framework.
02:15It's quite clear that in any case we need to reinforce Europe's capabilities and that means investment in research investment in industrial production also becoming state of the art you know in terms of cyber security and new technologies.
02:29That is exactly what the European investment bank is doing. We have signed very important deals already with just to give you an example.
02:37Quantum the very important drone manufacturer in Germany. We have signed research programs with Thales with Indra with OECIA.
02:48So we are already on the spot financing those projects that can make a difference for Europe. And I think that we will start seeing the difference quite soon.
02:57But you know president could the EIB actually be crucial for countries with high deficits or debts not willing to sacrifice their welfare states such as Spain.
03:06Well the Spain is not really an example right now in terms of the of the situation of the fiscal situation because actually Spain has exited the excessive deficit procedure.
03:16So it is not one of the countries that is flagged you know as a concern from that point of view. But indeed I think that member states do see more and more the European
03:25investment bank as their partner to be able to continue to finance strategic infrastructures from the country for the country. We're talking a lot about security and defense
03:33Francine but citizens care about housing about health. You know just today we're going to sign a very important deal in the housing sector the largest ever in Belgium.
03:421.7 billion euros. We are really supporting those investments that are critical not only from the business or the strategic point of view but from the citizens point of view.
03:52I think that's important. So do you think there's just a bigger role for the EIB actually. How much of a bigger role does it have in four or five years from now.
04:00We are already having a bigger role. You know in 2025 we hit the 100 billion unprecedented level. And with our triple A and the fact that we have the 27 member
04:11states as our shareholders that we have a very clear strategic roadmap which is fully aligned to European priorities. I think that we're in a very strong position to be to be an
04:21engine and a key actor. And that's already happening as we speak. Do you think this week in Davos there was a wake up call from you know policy makers in
04:29Europe to be more competitive to try and act and be more sovereign but also from businesses and chief executives that maybe they could could do things
04:37differently. What we're seeing in the last year and I think that we have seen it in the many meetings and events I've participated in in Davos is that there is
04:46strong interest in investing in Europe that Europe is perceived to be a beacon of stability and trust. And that is essential for investors obviously.
04:54And that Europe is also moving from action plans to action. And that's exactly what we need to do. I mean we know each other for
05:01many years. You know I'm really a person that is focusing on what we can do. And I think that's already happening. I mean it was
05:09Spain just announced plans for a sovereign wealth fund right to fill the gap left by the expiration of the next gen EU. Is it something that
05:15the EIB could pick up. We're already partnering with Spain and with other member states to try to make the maximum out of the recovery and
05:22resilience facility. Spain is an example in terms of good use of those European funds. I mean the growth level of the country the reforms
05:32that we were able to undertake to really modernize and improve productivity in the country and digitalize it are already showing their
05:40impact. And I think it's very wise to try to extend that possibility so that we can continue to keep in Europe. And it's not only Spain I
05:50insist the right level of investment we should avoid. And I think that's the trade off that you're trying to ask me about. We should
05:57avoid that because we invest more in security and defense in stricter sense on military investments that we do not take care of all
06:04those investments that are also strategic for the future of Europe because our security does not only depend on tanks. It is also about
06:12energy. It's about productivity technological leadership and international partnerships. Now you know I mean there's also going to be a change at the top of
06:19the ECB as you know they're looking for a replacement for Madame Lagarde when she steps down. Is it time for a Spanish person to be in charge.
06:27Well that's thanks for for raising the issues. Indeed there's never been a Spanish head of the European Central Bank. In my current position I couldn't
06:37possibly comment. But the fact is that Spain is the fastest growing economy. It's a large country a large economy very performant. They're excellent
06:46professionals. I'm sure. And it has never had a person at the at the helm of the European Central Bank. But it's not for me to comment.
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