The European Bank for Reconstruction and Development (EBRD) acts as a strategic partner for the European Union, financing private sector projects and municipal services. While the bank operates independently, the EU holds a 3.03% stake, with EU-related shareholding, including the European Investment Bank, totaling 63% of the bank’s capital.
Governance and EU Representation
The EBRD operates under the authority of a Board of Governors, which delegates operational and policy direction to a resident Board of Directors. The European Union maintains a formal role within this structure, represented by a Governor and an Alternate Governor. On the Board of Directors, the EU is represented by an Executive Director and an Alternate Director.
The EU Executive Director coordinates with Board Directors from EU Member States to align voting positions. This process involves consulting Commission and European External Action Service (EEAS) services on projects submitted for approval. The objective is to ensure that voting reflects the priorities of the European Union as a whole, with positions determined on a case-by-case basis.
Investment Scope and Strategic Objectives
Founded in 1991, the EBRD focuses on countries that apply democratic principles. Its primary mission is to support private sector development through project financing, business services, and high-level policy dialogue. Investments must adhere to sound banking principles, additionality, and transition impact requirements.
The bank is the largest single investor in its regions of operation. In 2016, the EBRD provided EUR 9.4 billion in financing across 378 projects.
- Financial institutions: 33% (including support for micro, small, and medium-sized enterprises via financial intermediaries).
- Corporate sector (industry, commerce, agribusiness): 26%.
- Energy: 23%.
- Infrastructure: 18%.
Beyond its direct financing, the EBRD works to mobilize significant foreign direct investment. While it primarily targets private enterprises, it also collaborates with public partners to facilitate the restructuring of state-owned firms, support privatization, and improve municipal services.
Alignment with European Union Policy
The EBRD serves as a key strategic partner for the European Union, providing financial and operational support for major EU policy objectives. This cooperation includes the European Neighbourhood Policy and the Europe 2020 Strategy for growth and jobs, which incorporates the European Semester. Furthermore, the bank supports the EU’s response to the migration challenge.
The European Union holds 3.03% of the EBRD’s total capital, a figure matched by the European Investment Bank (EIB). When combined with the shareholdings of individual EU countries, the total EU-related shareholding reaches 63%.
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