How the EIB boosts corporate profits while the public pays the price

A new report, "The wheel of corporate fortune: How the EIB boosts profits in the name of competitiveness," exposes the European Investment Bank’s (EIB) questionable lending practices. Authored by Counter Balance, Observatori del Deute en la Globalització (ODG), Observatoire des Multinationales, and Gresea, the report reveals how the EIB is funnelling billions in public loans to highly profitable corporations—companies capable of financing their projects without public subsidies.

Between 2020 and 2023, seven major corporate clients—Iberdrola, Stellantis, Intesa Sanpaolo, Leonardo, Orange, Northvolt, and the Gavi Alliance—received more than €11 billion in EIB loans. Over the same period, these companies earned €100 billion in profits, distributed €38,7 billion in dividends, spent €11,9 billion on share buybacks, and paid their CEOs a staggering €146,7 million.

Meanwhile, some of these corporations are under scrutiny for social and environmental abuses, corruption, and even supplying weapons to countries violating international law. For instance, Iberdrola’s EIB-funded solar project in Spain is now under investigation for fraud, illegal expropriations, and failing to deliver promised jobs.

As the EIB evolves into a key EU institution to boost competitiveness in strategic sectors, its focus appears to be shifting away from public benefit. Instead, the report highlights a troubling trend: public funds are being used to enhance corporate profits while overlooking urgent social and environmental needs.

The EIB, which operates under a non-profit mandate, accrued €8,9 billion in profits between 2020 and 2023 —raising serious questions about how its activities align with its mission to serve the public interest.

To realign its operations with its public mandate, the report recommends that the EIB:

• Prioritise public-public partnerships and robustly fund essential services;

• Enforce strict environmental and social standards for all projects;

• Impose strong conditions on any corporate loans;

• Collaborate closely with EU and national public financial institutions to maximise the positive impact of public investments.

With the EU facing mounting social and environmental challenges, every euro of public money must be spent wisely. The EIB must stop enabling corporate profits at the public’s expense and start investing in solutions that deliver true value for people and the planet.