EIB Vice-President Nicola Beer: „Technological Innovation is Europe’s Motor“

Mrs Beer, Commission President Ursula von der Leyen wants to make investment in the economy, infrastructure and innovation an absolute priority. The Draghi report speaks of an annual investment requirement of 800 billion euros so that Europe is not left behind in global competition. What role will the European Investment Bank (EIB) play in this?

The Draghi report has a clear and ambitious objective: to ensure Europe’s competitiveness in an increasingly digitalised and sustainable world. Strengthening the competitiveness of our European industry through technological innovation is a top priority for the EIB. This includes the transition to a green economy, the strengthening of digital infrastructure and innovation in key industries. We are committed to supporting investments that private investors still consider too risky. We offer a bridge between forward-looking ideas and the necessary financing to turn them into marketable products and services. In this way, we can help to secure Europe’s leadership in innovation, strengthen the resilience of the European economy and at the same time drive social and ecological change.

How can we harness the potential of ideas together, how can we turn innovations into concrete products and services, grow businesses, improve lives, create jobs and lead Europe and the world to a more sustainable growth model?

Technological innovation is the engine that ensures Europe’s long-term competitiveness. The EIB invests in projects that strengthen precisely this innovative power. One example is our support for start-ups and technology companies active in key areas such as the bioeconomy, decarbonisation, renewable energy and artificial intelligence.

One example is our support for the start-up Sunfire in Dresden, which has developed a ground-breaking electrolyser technology. This reduces energy consumption in hydrogen production by up to 30 per cent. We are also investing in battery gigafactories, green steel and the development of a sustainable hydrogen economy. Future technologies such as nuclear fusion should also be given greater focus. Europe has the potential to play a pioneering role here.

For me, it is crucial to make targeted investments in transformative technologies that will take Europe’s industrial base to the next level. We need a „New Industrial Deal“ that drives both Europe’s technological and ecological transformation.

Can you give us an example of what the EIB can do for the everyday lives of the EU’s 450 million inhabitants?

Climate protection is a key issue for the EIB. Our investments in renewable energies, such as offshore wind farms, not only strengthen Europe’s independence from fossil fuels, but also create jobs and contribute to decarbonisation.

Between 2010 and 2023, for example, we provided loans totalling 9.5 billion euros for 28 offshore wind farms in the North and Baltic Seas. Together with private investors, this mobilised investments totalling 41 billion euros. These parks supply over 13 million households with clean energy and have created thousands of jobs.

But it’s not just about large-scale energy projects. The EIB also finances projects for affordable, sustainable housing or public transport, such as modern suburban trains and electric buses that increase travelling comfort and help improve air quality.

What do you personally want to prioritise?

One of my priorities is to secure access to critical raw materials. Without these materials – from rare earths to lithium – we can neither successfully drive forward the energy transition nor the digital transformation. The recently passed Critical Raw Materials Act represents an important milestone. It not only aims to reduce dependencies on individual supplier countries, but also opens up opportunities for new, partnership-based alliances – for example with countries in Africa. The focus is on creating local value chains that benefit local people, create jobs and promote sustainable economic development. With a targeted raw materials strategy, the EIB will help to finance raw materials projects in and outside the EU and at the same time ensure the sustainable utilisation of these resources.

Where do you see the greatest need for investment?

The transformation of the energy sector remains one of the biggest challenges. Massive investments are still needed here to enable the switch to renewable and affordable energy. The decarbonisation of energy-intensive industries such as steel and chemicals must also be driven forward.

At the same time, artificial intelligence will play an increasingly important role in increasing the efficiency of production processes and promoting innovation. Europe must not fall behind here – it needs massive investment in research, infrastructure and start-ups that develop and apply these technologies.

The EIB recently approved financing totalling 425 million euros for automotive supplier ZF Friedrichshafen. How important will the ailing automotive industry still be for the EU’s economic development in the future?

This subsidised loan will be used to develop technologies for innovative braking and steering systems that will help the company to master the transition to automated driving and remain competitive. Projects like this will ensure that the automotive sector continues to play a leading role in the EU’s economic development as a driver of innovation. We should not underestimate the ability of manufacturers, suppliers and the entire value chain to find new solutions and make them marketable, even if they are currently facing challenges such as weakening demand for electric cars. On the one hand, the difficulties in this area show how important it is to have long-term predictability through the regulatory framework. And on the other hand, it is essential that we are open to new technologies, e.g. with regard to fuels such as e-fuels.

You want to spend six billion euros on security and defence. What exactly is this money to be used for?

We need to strengthen Europe’s security and defence industry and thus our sovereignty. This requires investment at national and European level. That is why we, as the EIB, are not only making six billion euros available for financing in this area with our action plan, but have also expanded the definition of dual-use and made it easier for SMEs and mid-caps operating in this sector to access our financing. Drones, control systems, satellites and cybersecurity technologies can now be funded more easily.

How can the EU catch up with global competition in the contested markets of digitalisation, keyword AI? And what can the EIB do for this important sector?

The EU is already at the forefront of digitalisation in many areas. The picture here is not always as bad as it is sometimes portrayed. For example, according to an EIB investment survey, 70 per cent of EU companies use advanced digital technologies, in Germany particularly in mechanical engineering, robotics and platform technologies. But of course we need to create even better framework conditions in order to increase investment in this area. This can only succeed if we mobilise private capital. The EIB Group sees itself as a ‚crowding-in‘ tool and supports innovative companies, such as in the field of AI, along the entire growth cycle. We finance and invest in innovations from the seed phase, through the scale-up phase to large market-ready companies with various products ranging from VC funds and venture debt to credit lines and guarantees.

For some time now, the EIB has also been referred to as the EU’s climate bank. What contribution can the EIB make to the sustainable transformation of the EU economy and what contribution might it not be able to make?

More than half of all EIB loans totalling 88 billion euros in 2023 had a climate focus, with this share even amounting to two thirds of investments in Germany. The EIB focuses on promoting key areas such as renewable energies, energy efficiency, storage technologies, electricity grids and hydrogen. Electricity grids in particular are increasingly becoming a bottleneck. This is why we support energy suppliers in investing in the expansion and digitalisation of electricity grids, such as TEAG in Thuringia.

The Commission wants to propose risk-absorbing measures to make it easier for commercial banks, investors and venture capitalists to finance fast-growing companies. Do you see a role for the EIB in these measures?

We support the plans of the European Commission and the EU member states to create a deeper capital markets union in Europe and to develop this into a ’savings and investment union‘. This will help to mobilise private capital, much of which is lying dormant in low-risk savings accounts, for European projects. Enrico Latta’s proposal for a deep tech stock exchange is also interesting, to make it easier for investors to invest in European start-ups and scale-ups in this important sector. As is so often the case, there is still great potential in this area in Europe that needs to be realised if we want to remain competitive on an international level.