Brussels, 19 November – "The wheel of corporate fortune: How the EIB boosts profits in the name of competitiveness," a new report from Counter Balance, Observatori del Deute en la Globalització (ODG), Observatoire des Multinationales, and Gresea, faciliated by the European Network of Corporate Obsevatories (ENCO), reveals how 7 top corporate clients of the European Investment Bank (EIB) —Iberdrola, Stellantis, Intesa Sanpaolo, Leonardo, Orange, Northvolt and the Gavi Alliance — receive billions in public loans despite significant profits and troubling social and environmental records.

Since 2020, these companies have collectively earned €100 billion in profits, an amount exceeding half of the EU’s annual social infrastructure needs. Over €11 billion in EIB loans has bolstered these businesses, which have since distributed €38,7 billion to shareholders, spent €11,9 billion on share buybacks, and paid CEOs €146,7 million.

The EIB’s financing of large corporations and private financial institutions has steadily increased as it becomes a central EU institution to enhance competitiveness in strategic sectors. The report highlights a concerning trend: public funds are being used to make projects even more lucrative for companies capable of self-financing, many of which have harmful social and environmental impacts, face fraud investigations, or supply weapons to countries violating international law

Evidence shows that the Bank prioritises boosting profits over social and environmental benefits, which divert resources from investments that serve the public good. Between 2020 and 2023, the EIB has accrued €8,9 billion in profits from 2020 to 2023, despite its mandate to operate as a non-profit institution and finance projects that defend the public interest.

Frank Vanaerschot, Director at Counter Balance, said: “With €100 billion in profits and €38 billion in dividends, these companies can clearly fund their own projects. We urgently need this money for projects and for actors genuinely committed to serve the public interest. The EIB must end the corporate capture of public funds and invest in true solutions for the social and environmental crisis - creating jobs and providing public services, not boosting profits for wealthy companies.”

Vanaerschot continues: “The EIB must leverage its lending power to drive projects that guarantee affordable green energy, accessible mobility, healthcare, and essential digital services. This means setting strict conditions that enforce resource efficiency, environmental safeguards, and strong labor standards across supply chains”.

To align with its public mandate, the report recommends that the EIB prioritise true public-public partnerships, robustly fund essential services, establishes strict environmental and social standards in projects and imposes strong conditions on any company receiving lending from the Bank. By collaborating closely with EU and national public financial institutions, the Bank can maximise the positive social and environmental impact of public investments, aligning Europe with sustainable and equitable economic transformation goals.

*****ENDS *****

Notes to editors - Findings per company:

  • Iberdrola received €3,5 billion from the EIB since 2020 while reporting profits of €4,8 billion in 2023. At the same time, the company is linked to 13 socio-environmental conflicts in Central America, Brazil, and Europe, primarily due to large-scale projects with significant ecological and social impacts. One of them is the largest European solar plant in Spain financed by the EIB, which did not deliver promised local jobs, illegally expropriated the main land owner and is being investigated for fraud by the European Public Prosecutor's Office.

  • Stellantis received €785 million from the EIB while recording a 21% increase in profit (€15 billion annually). The company has paid out €11,8 billion in dividends to its shareholders. The car manufacturer has paid a €1,5 billion fine to avoid going to trial for cheating with engine emissions tests of engines, and received another fine for violating air pollution standards in the US. The CEO’s annual salary of €36,5 million starkly contrasts with the average EU workers’ earnings.

  • Intesa Sanpaolo, Italy's largest bank, received €2,9 billion from the EIB since 2020. It only reports 5% of its emissions financed, leaving much of its environmental impact unaccounted for. Since the Paris Agreement concluded in 2015, it has financed $81 billion in fossil fuels, including $8,6 billion in 2023 alone, exploiting loopholes that facilitate continued investment in dirty energy.

  • Leonardo was granted €460 million by the EIB despite its production of weapons and military equipment, raising ethical concerns regarding the EIB’s role in indirectly supporting militarization through finance. Leonardo has also been supplying EIB-supported helicopters to Israel, which according to the International Court of Justice is plausibly committing a genocide in Gaza.

  • Northvolt received €1,3 billion from the EIB since 2020, including a €942,6 million loan in 2023 — nearly 20% of the funding for the expansion of the first EU gigafactory. It is now in crisis and struggling for survival, therefore it has been making €1,7 billion in losses since 2020. The company plans to cut 1,600 jobs amounting to a 24,6% reduction of its workforce. The failure of the company demonstrates that the EU’s competitiveness strategy of relying on giving billions in public support to private companies is unlikely to deliver the necessary social and environmental benefits Europe needs;

  • Gavi, the Vaccine Alliance has received €1.9 billion from the EIB since 2020. During the COVID-19 pandemic, its deal for 210 million Moderna doses cost low-income countries nearly five times the manufacturing price, significantly boosting Big Pharma profits while putting at risk millions of lives in the Global South.