back

Speech by Sir Brian Unwin, President and Chairman of the Board of Directors of the European Investment Bank, on 11 November 1999

When Edmond Israel telephoned me earlier this year to ask whether the EIB would be willing to sponsor this year's Edmond Israel Foundation "Vision for Europe" Award Ceremony, I found the decision very easy to take. Unlike most decisions I have to face, all the arguments were in favour of this one, and none against.

First, apart from the EIB's close and productive relationship with Cedel International itself, which I congratulate once more on being the prime mover behind this event, it is impossible to refuse any proposal of this kind coming from Edmond. Let me, therefore, immediately pay tribute to him, the inspiration of this award. I have to say that one of the most moving and inspiring of all my memories of Luxembourg is the occasion two years ago in this very auditorium when Edmond presented his award to Helmut Kohl. The disparity in physical size was eclipsed by the parity of intellectual and moral stature, and commitment to their vision for Europe.

Second, this is an increasingly prestigious occasion, in which many of the great authors of the construction of modern Europe have been honoured. It is therefore fitting that the European Investment Bank, which is the financing institution of the European Union, and a major contributor to the European construction which is at the heart of Edmond's vision, should be a sponsor on this occasion. I hope it will help to symbolise our commitment and dedication to the European vision. It is also, of course, a particular honour and pleasure for me personally to be present and to speak on this occasion, since it is the last one I shall attend as President of the Bank.

"our sponsorship will help to symbolise our commitment and dedication to the European vision."

But thirdly, the participation of the Bank this year has an even more particular justification and significance. Our principal objective - our core role - is, by our long-term financing of sound investment projects, to promote the economic cohesion and integration of the European Union - and now also, of course, to facilitate the future integration of the applicant countries - and future members of the Bank - of Central and Eastern Europe, and Cyprus and Malta. But during the past two years or so, our top strategic priority within this objective has been to support the successful launch and subsequent sustainability of economic and monetary union (EMU) and of the euro. And tonight the recipient of this prestigious award, whom we are here to honour, is Mr Euro himself, the President of the European Central Bank (ECB).

There is nothing so tiresome as sponsors who spend too much time advertising their own product at the expense of the event they are sponsoring. We all suffer from this on our television sets every day. But I hope you will forgive me if I remind you briefly of the action the EIB has taken to put its not inconsiderable financial muscle behind EMU and the euro.

As the world's largest non sovereign borrower, we have made a special effort to promote the euro on the international capital markets. Even before the midwife delivered the baby on 1 January this year, we made the world's very first euro bond issue - € 1 billion in January 1997, subsequently extended to € 1.5 billion - and during the rest of 1997 and in 1998 we made euro or euro-tributary issues amounting to no less than € 21 billion. This year we expect nearly half of our total borrowing of between € 28 and 30 billion to be in euros, and by the end of the year we aim by these issues and by conversion of our existing debt to have established a large and liquid pool of more than € 50 billion. There is no doubt that the support given by the EIB through its funding programme has played a major part in establishing the credibility and reality of the euro on the capital markets.

We have also geared a significant part of our lending to support the growth and employment policies that must accompany monetary union if, in a tight monetary and fiscal regime, unemployment is to be reduced and EMU is to remain acceptable to the peoples of Europe. In response to the request of Heads of Government at the June 1997 Amsterdam Summit, we launched our "Amsterdam Special Action Programme" (ASAP) - the title of which is a particularly happy coincidence in view of the nationality of the recipient of the award today. Under this Programme we have now, in addition to our traditional lending operations, committed huge sums to the new and vital areas of health, education, and urban renovation and - perhaps the most significant of all - venture capital for innovative SMEs with growth and job potential. In combination with our affiliate, the European Investment Fund (EIF), we have now committed over € 700 million in various forms of early stage risk capital, for projects in every country of the Union.

We are, therefore, proud of our contribution to the launch and success of EMU, and therefore equally proud to be able to join today in honouring Wim Duisenberg, the captain of the EMU ship at the ECB. I use the word "success" because, even though EMU is only ten months old, I believe it has been a success - a truly remarkable achievement.

"our EMU bird...has actually sprouted wings and taken off vigorously."

One of my more depressing memories of the last two years is that of a Cambridge Union debate about 18 months ago when as principal speaker I opposed the motion that "EMU has its head in the sand" and, despite what I thought was a brilliantly persuasive speech, lost the debate heavily on the final vote. But how wrong they were! Not only has our EMU bird not had its head stuck in the sand, but it has actually sprouted wings and taken off vigorously. And no-one has made a greater personal contribution to this take-off than Wim Duisenberg whom we are proud to be with you here this evening to honour.

 
top