Brussels is revving up its Competitiveness Compass, and President von der Leyen swears it won’t derail the Green Deal, but profits of businesses stay at the core at the expense of social and environmental justice.
And the European Investment Bank (EIB), the financial firepower of the EU, follows suit. While the Bank gears up to support the Commission’s new industrial plan, the spotlight shines on the contradictions in its role—championing public investment for the people while propping up corporate profits.
This month, we delve into critical developments: von der Leyen’s Clean Industrial Deal, the controversial Rwanda critical raw materials deal, rising spending for the military industry, and the plans to address the housing crisis.
Let's break it down.
🥅 A GREEN DEAL PILLAR? MORE LIKE ANOTHER CORPORATE SAFETY NET
Just another industry’s wish list?: Von der Leyen’s first policy package—featuring the Clean Industrial Deal, Action Plan for Affordable Energy, and Omnibus regulation—reflects the EU’s commitment to addressing industrial challenges. It all started in Antwerp, where Europe’s biggest polluters—led by the energy-intensive industry (steel, cement, aluminium and chemicals, the producers of more than ⅕ of EU’s greenhouse gases)—pitched their demands directly to her. The result? The Antwerp Declaration, a corporate wish list now backed by 1,300 companies. Fast forward to February 26th, and von der Leyen is back in Antwerp, handing them in the Clean Industrial Deal.
It’s EIB cash splash: The Bank is gearing up to drive Europe’s industrial makeover, funneling funds into energy-heavy sectors and clean tech. If the Bank follows the CDI, expect more and more guarantees for small businesses and energy-intensive industries, alongside backing for clean technologies like Carbon Capture and Storage (CCS) and hydrogen that let polluters keep polluting. The EIB could lead an actual decarbonization with some new incentives, but instead it’s still lending to companies out of sync with Paris targets.
Who really benefits from more InvestEU guarantees? With the EIB as the main implementor, our previous report shows that it flows to corporate giants like Engie and Intesa. Even the Commission’s own evaluation flags major flaws: unclear additionality, shaky methodology, and inflated figures based on estimates rather than real mobilized investments.
The EIB’s industrial decarbonisation play: A €500 million guarantees for corporate Power Purchase Agreements (PPAs) – contracts between energy producers and the companies fixing the quantity and price at which energy will be sold for a certain period of time. They will not structurally make renewable energy more affordable nor break renewables’ energy prices free from fossil fuels in the current commodified energy market. This setup keeps profits of energy producers as a key element of the prices in these contracts, while the high energy prices keep trickling down on to the consumers.
Powering up: Meanwhile, the EIB will also come up with a ‘grids manufacturing package’ of at least €1.5 billion of counter-guarantees to manufacturers of grid components in European supply chains. The aim? Use public funds as a means to provide businesses with ‘needed certainty’ to ramp-up production.
And there is more: ‘TechEU’ investment programme is on the way, to be worked out between the Commission, the EIB and the private sector. It will support disruptive innovation, and scale-up companies developing anything from AI, clean tech, critical raw materials, to quantum computing, semiconductors, and neurotechnology. How much more public cash will cushion private risks (and gains)?
Bottom line: the Clean Industrial Deal props up the dysfunctional status quo, ignoring the mounting evidence that public ownership would supercharge the clean energy roll out, without just lining corporate projects one project at the time.
👯 A MAJOR WIN: EU PARLIAMENT VOTES TO FREEZE THE GLOBAL GATEWAY CRITICAL RAW MATERIALS DEAL WITH RWANDA
The European Parliament voted to halt the EU-Rwanda raw materials deal—a huge victory against resource exploitation and EU complicity in fueling conflict. Rwanda is actively fueling war in the DRC. While conflict escalates and Kigali backs M23/AFC rebels, Brussels has been turning a blind eye—not out of oversight, but by choice. The EU’s rush for minerals to feed its so-called green transition is trampling over peace, justice, and human rights. By cutting deals with Rwanda despite overwhelming evidence of its role in the war, the EU is undermining DRC’s sovereignty and rewarding aggression that has already caused millions of deaths. These are the kinds of deals concluded under the EU’s Global Gateway strategy, which it claims to be ‘values-driven’.
A collective push: Alongside 63 CSOs across Europe and Africa, we demanded an immediate halt to the deal and a complete shift toward policies that prioritize peace, justice, and the rights of communities in the DRC. We also raised these concerns directly with the EIB Board ahead of its February 5th meeting—because public money should not bankroll conflict. But the fight isn’t over. Now, we need to keep the pressure on the European Commission to act and cancel the deal.
🙅 “MORE EUROPE”? MORE EXPLOITATION
Thank you, but no thank you: “The world needs more Europe,” declared EU Commissioner for International Partnership Jozef Sikela at the recent informal meeting of EU development ministers on February 10-11, hosted by the Polish presidency.
But if "more Europe" means Global Gateway’s relentless push for European business interests at any cost—no thanks. More of this Europe means more plunder, not fair, people-centred cooperation. And EU officials aren’t even hiding it: “We want to build mutually beneficial partnerships with our counterparts, contributing to their development while opening new opportunities to our companies,” Sikela admitted.
Take Mauritania, in the spotlight for that meeting. In December 2024, the EU signed a fresh Global Gateway deal—one that funnels funds into military infrastructure, equipment, and border control, all branded as "complementary engagement." But where’s the development? 👀
In the meantime, the EU attempts to turn Mauritania also into the EU’s future green hydrogen hub—its land and water drained to power Europe while European oil and gas giants rake in massive profits. A new era of resource grab, same old exploitation, a paradigm well exposed in our and Eurodad’s report.
And there's more. Sikela also revealed that Global Gateway’s approach will expand further: “Team Europe should be built on a strong ‘Team Nationals’—each Member State supports its companies in developing truly impactful development projects, scaling them up, and working with the EU to provide the right financial tools.”
Translation? More corporate handouts, more public money backing European multinationals. Will this also mean export credit agencies stepping in as ‘development’ actors? We have unpacked the risks of this strategy. One thing’s clear: Global Gateway continues being a corporate giveaway, not a development plan.
🛡️ ARMED AND FUNDED: THE EU’S DEFENCE DILEMMA
Defence, weapons, security… These words have dominated EU debates lately. Leaders met, the Munich Conference happened, and—unusually—the EIB is at the center of it all.
How come? With the US threatening to leave NATO and the war on its doorstep, a desire is mounting for some in the EU to boost military capacity. The numbers are daunting—€500 billion is supposedly needed over the next decade to strengthen defence, but ‘only’ €8 billion is earmarked in the current budget. Member States, already stretched by economic challenges, are reluctant to foot the bill themselves. That’s where the EIB comes in. If the Bank expands its role in defence financing, it could provide cheap loans without directly draining national budgets—a politically convenient way to ramp up military spending without Member States having to cough up the cash.
The push is on: 19 countries have asked the Commission to loosen EIB rules for more military lending. Another idea is floating: “defence bonds”—mirroring COVID-19 recovery funds but with a twist: national governments must chip in upfront to cut borrowing costs. The irony? The EU refuses common bonds for green investment but is suddenly open to pooling debt for the arms industry. Will these demands shape the March White Paper? We’re watching closely.
We oppose this shift. Last year, together with 29 civil society groups and trade unions we urged the EIB not to become a piggy bank for the arms industry. Why? Because it’s already funneled money to companies like Leonardo—whose tech has enabled Israel’s genocide in Gaza.
✏️ 📋 GREEN TRANSITION ON THE MENU
A(nother) crisis that the market won’t fix: The EU’s housing crisis is spiraling. Millions face skyrocketing rents, overcrowding, or outright homelessness. In 2023, over 10% of city households spent more than 40% of their income on housing, while rents shot up 18% in just over a decade.
Why? Years of public underinvestment left housing at the mercy of private developers who profit from speculation instead of ensuring affordability.
So, where does the EIB come in? On February 5, the EIB Board of Directors* met to discuss support for EU electricity networks under REPowerEU—especially in decarbonizing housing, a flagship priority for this Commission. Its new Housing Task Force and investment platform could be a game-changer—but only if public interest comes first. We’ve mapped out a five-point action plan to make sure public money serves people – especially those most in need, not landlords' profits.
We don’t stand alone. Ahead of this EIB meeting, 49 MEPs sent a letter to the EIB Board, urging it to take action. The choice is clear: break with failed market-driven approaches, or let inequality and exclusion deepen.
*Board of what? It’s a governing body of the EIB, which meets monthly to decide on loans, guarantees, and borrowings. It’s a 59-seat powerhouse: 28 directors (one per EU country + one from the Commission) and 31 alternates, appointed for five-year terms.
Who calls the shots? Votes aren’t one-person-one-vote—power is weighted. Most decisions need a third of members + 50% of capital, while key areas demand 18 votes + 68% of capital. In short? Big capital holders have the loudest voice at the table.
🍜 WHAT’S COOKING AT THE EIB?
This month, the EIB approved 17 projects, of which 4 were signed*: 12 in the EU and 5 outside. Most of them were credit lines (4), transport investments (4), and water and sanitation projects (3).
*What’s the difference between signed and approved? An approved project has been reviewed and endorsed by the EIB's Board of Directors but has not yet reached the final agreement signing stage, meaning its terms and conditions are still being finalized. A signed project has gone through all negotiations, and a formal financing agreement has been concluded between the EIB and the project promoter.
🚨 In the spotlight
- SANTANDER PT LOAN TO SMES & MIDCAPS (Portugal) - €325 million and SANTANDER PT LOAN FOR AGRICULTURE (Portugal) - €75 million (approved). The operations are standard loans to finance small and medium sized enterprises (SMEs) and mid-caps in Portugal. BUT …
🕵️ Uncovering the beneficiary
- This month, a Portuguese appeals court overturned fines totaling €225 million imposed on 11 major banks, including Santander Portugal, for alleged collusion in housing loans. The court ruled that the statute of limitations on the unlawful acts had expired, leading to the dismissal of the fines.
- Investigations have revealed that Santander has financed "green" bonds intended for Brazilian agribusinesses accused of environmental violations. Notably, funds were directed to entities involved in deforestation and other harmful activities in the Amazon. For instance, a report highlighted that Santander co-coordinated a £76 million "green" bond for SLC Agrícola, a company linked to significant deforestation in Brazil's Cerrado region.
- According to a November 2024 report from Reclaim Finance, Santander significantly expanded its financing for upstream and midstream oil and gas projects between 2021 and 2023, spending $16.75 billion. Notably, its funding for oil and gas companies tripled from 2022 to 2023, far surpassing its peers.
- Santander ranks among the top 20 European banks providing loans and underwriting services to companies supplying arms to Israel. Between January 2021 and August 2023, it allocated €1.98 billion to these transactions, according to research from Pax and Profundo.
🤝 Signed & sealed
- KRAKOW UNIVERSITY OF ECONOMICS CAMPUS EXTENSION (Poland) - €46 million (approved). The project concerns the extension of the University of Economics in Kraków (UEK) campus, the renovation and modernisation of the various university buildings.
- SIDEKICK (Iceland) - €35 million (approved). The project will support the development of the Company's existing and new digital health application.
- ESB G4M ENHANCED SUPPORT FOR MIDCAPS (Croatia) - €100 million (approved). The operation consists of a "Linked Risk Sharing Guarantee" on a new loan portfolio provided by the intermediary to mid-caps in Croatia.
- MALTA EU FUNDS 2021-2027 - €260 million (signed). The project will co-finance small projects under Malta's Operational Programmes for the period 2021-2027 under the Cohesion Fund, the European Regional Development Fund (ERDF), the European Social Fund (ESF), the European Maritime, Fisheries and Aquaculture Fund (EMFAF) and Just Transition Fund (JTF).
- ANDORRA ELECTRICITY AND DISTRICT HEATING FL- €60 million (approved). It aims at supporting investments in electricity generation, transmission, distribution, district heating and cooling production and distribution in Andorra, in the period 2024-2028, enhancing its interconnectedness with Spain.
- BDE WATER AND SANITATION II (Ecuador)- €95 million under EFSD+ guarantee (approved). It aims at improving access to drinking water and sanitation connections and/or waste collection and disposal services.
- POTATOSEED SOLYNTA (The Netherlands) - €20 million (approved). The operation will finance the promoter's research, development and innovation (RDI) activities as well as commercialisation of the new hybrid True Potato Seed (HTPS) varieties.
- UKRAINE WATER RECOVERY FL - €200 million (signed). It is a framework loan (FL) to improve drinking water supply and waste water treatment in cities throughout Ukraine, focusing in particular to the quick restoration and repair of damaged or overstretched water and sanitation infrastructure.
- WOMEN ENTREPRENEURSHIP PROGRAMME IN SPAIN - €150 million (approved). The aim is to finance the establishment of businesses by women entrepreneurs in the healthcare sector and pharmacies.
- TEKNIA - RDI AND ADVANCED MANUFACTURING (Spain, Romania, Poland, Germany, Czechia, Sweden) - €30 million (approved). The project encompasses the Group's investments related to advanced manufacturing and energy efficiency capital expenditures and RDI programme for the period 2024-2026.
- SCHLESWIG-HOLSTEIN ELECTRIC TRAINS (Germany) - €250 million (signed). The project consists of acquisition of 42 new electric trains by the state of Schleswig-Holstein in Germany.
- POLAND FLOOD RISK MGMT & SUSTAINABLE INFRA (SPL) - €200 million (approved). It is a Structural Programme Loan will co-finance the flood protection and prevention programme in Poland.
- BOGOTA SUSTAINABLE TRANSPORT FL - METRO LINE 1 (Colombia) - €430 million (approved). This is a major allocation under the BOGOTA SUSTAINABLE TRANSPORT FL (20170904) for the construction of Bogotá's first automated metro line.
- HAMBURG UNDERGROUND ROLLING STOCK GREEN LOAN (Germany) - €173 million (signed). The project consists of the purchase of 41 trains (DT6-F) to renew rolling stock on the existing lines of Hamburg metro network.
- TRANVIA ALCALA DE GUADAIRA (Spain) - € 41 million (approved). The project concerns the railway installations (power supply, signalling, passenger's information systems and telecommunications), plus the architectural works for the 12 tramway stops.