The EIB supports the democratic transition in the Mediterranean Southern countries by increasing its financing. In particular, EIB is allocation additional resources of up to €6 billion by 2013. Moreover, the bank will propose holding a regional conference on the financing of small and medium-sized enterprises in Tunis by the end of the year to the ministers of the Mediterranean and EU countries gathered together at the annual FEMIP (the Facility for Euro-Mediterranean Investment and Partnership) meeting in Brussels on 12 July.

In the immediate aftermath of the Arab spring, the EIB launched in Tunisia, in agreement with the country’s new authorities, a series of projects in support of employment, small and medium-sized enterprises and the development of microcredit, the modernisation of transport infrastructure and the expansion of energy generation and distribution. Accordingly, €300 million of the €600 million worth of new EIB loans announced for 2011 has already been approved to meet the people of Tunisia’s priority needs. The funds will be deployed from July 2011 onwards. This is part of the proposal for a new European Neighbourhood Policy recently launched.

Thus, given the outlook and the present and future challenges raised by the Arab spring, the EIB concentrates its action up to 2013 in three priority areas:

• Supporting job-creating projects, the number one priority for these countries faced with high unemployment;
• Developing an entrepreneurial culture by supporting SMEs and encouraging research, development and innovation;
• Fostering economic and social integration with the aim of achieving balanced development that targets more specifically isolated regions lacking infrastructure and communications links.

Furthermore, the bank of the European Union will use all of its skills and know-how to support democratic reform and economic development in the Mediterranean region.