The European Investment Bank (EIB) and the European Bank for Reconstruction and Development (EBRD) are increasingly financing operations in the same geographical areas, including Eastern Europe, the Southern Caucasus, Russia, the Western Balkans, and soon, Turkey. In light of this, European Parliament calls for increased cooperation between the two institutions.

As a consequence of their increasingly similar areas of operation, the European Parliament has, for the first time issued a joint report on the activities of the European Investment Bank (EIB) and the European Bank for Reconstruction and Development (EBRD). The report welcomes their efforts towards combating the financial crisis, and calls for the two institutions to work together more efficiently in areas of common interest.

Under current conditions of economic crisis, and increased difficulties in accessing credit, the operations of the two banks are even more important, in relation to their provision of credit to the public and private sectors.  In light of the European Economic Recovery Plan, the EIB has decided to increase its lending volume by 30% in 2009 and 2010, a move which is welcomed by the Parliament.

The report calls on the EIB and EBRD to ensure that even in times of financial strain, that they are active in promoting projects which support renewable energy sources and combat climate change.

Currently, there are three different types of cooperation between the two banks in their various areas of common operation:

• In Eastern Europe, there is a Memorandum of Understanding, where the EBRD takes the lead, and provides for joint investment.
• In the Western Balkans there has been a move away from competition to cooperation through pooling of funds.
• More recently, in Turkey the banks have reached an agreement based on the definition of "specific and common areas of competence, with the leading bank to be determined on a case-by-case basis."

As the objectives, modes of operating and the expertise of the two banks are very different, it seems that there cannot simply be an arbitrary division between lending operations in the public and private sectors. Therefore, the report takes the view that in countries of common operation, their actions should be complementary, depending on the comparative advantage of each bank.
 
In order to achieve more effective cooperation, the report makes a number of suggestions to improve collaboration at all levels of both organisations.  MEPs recommend that there should be an improved functional division of labour, which will allow each organisation to "focus on their respective skills and strengths."  The report also suggests that EIB specialises in the financing of larger scale projects, whilst the EBRD focuses on smaller-scale investments, but at the same time that a definition of types of projects and sectors which are of interest to both banks should be constructed so they are able to pool their knowledge and resources.

International financial institutions (IFIs) cooperation

In order to make a real impact on regions further away from the European Union's sphere of influence, the House recommends that the EIB and EBRD work together with other International financial institutions (IFIs).  A closer working relationship will help to ensure that overlaps and duplications in funding do not occur.
 
The activities of other multinational development banks and institutions clearly have a positive impact on the developing world, the report calls on the Commission to analyse in detail their full impact, in relation to the objectives and operations of the European Development Fund.