Challenges for the Council of Europe Development Bank
- Author(s):
- Parliamentary Assembly
- Origin
- Assembly
debate on 26 June 2014 (26th Sitting)
(see Doc. 13513, report of the Committee on Social Affairs, Health and
Sustainable Development, rapporteur: Mr Tuur Elzinga). Text adopted by the Assembly on
26 June 2014 (26th Sitting).
1. As the financial and economic crisis
still haunts Europe, many countries are struggling to restore growth, employment
and living standards to pre-crisis levels. With austerity measures
and chronic underinvestment becoming entrenched, social suffering
has reached unprecedented levels. In these harsh times, multilateral development
banks – such as the Council of Europe Development Bank (hereinafter
“CEB” or “the bank”) – are key partners in sustaining public, social
and economic investments, notably in areas where the private sector
alone would not venture.
2. The extremely uncertain economic situation and new regulatory
constraints have prompted the CEB to adapt, as necessary, its priorities,
working methods, internal structures and governance in order to
deliver “more with less”. The Parliamentary Assembly welcomes the
bank’s capital increase (effective from the end of 2011), efforts
to expand its membership and to boost the social added value of
projects, as well as steps to adjust internal structures and strategies.
The implementation of the Development Plan for 2010-2014 and the adoption
of a new Development Plan for 2014-2016 are crucial to the CEB’s
continued success.
3. The Assembly notes the bank’s continued commitment to preserving
the level of lending to the neediest countries (notably those outside
the European Union) without undermining its own risk profile, stable performance
and profitability. It appreciates the fact that, despite the grim
economic situation, no member State has failed to pay back loans,
helped by the bank’s willingness to and assistance in redesigning
some ongoing projects to help countries in budgetary difficulty.
Although the demand for CEB loans temporarily decreased between
2011 and 2013, the interest in new projects is picking up again,
with a strong emphasis on employment-support measures.
4. The Assembly believes that there is still much room for strengthening
the CEB’s ties with the Council of Europe, with a view to maximising
its impact and its comparative advantage. Niche activities with
high social value should be further expanded. They concern in particular
sectoral priorities – such as investment in administrative and judicial
public services, small-scale health-care projects, social housing
and asylum centres – and a geographical focus on countries in South-Eastern
Europe.
5. Noting the bank’s increased emphasis on employment-related
support, and its intention to launch innovative financing for essential
public services, the Assembly considers that the CEB could expand
its participation in underpinning public-private undertakings for
vocational training, skills development, professional counselling
and job placement for young people. As appropriate, this support
might usefully be extended to other vulnerable groups, such as persons
with disabilities, minorities and displaced or migrant persons.
6. The Assembly stresses the importance of direct contacts between
the bank and the parliamentary representatives of European States
for enhancing the visibility of the CEB’s work and potential. National parliaments
can play a highly valuable role in promoting project initiatives
for potential financing by the CEB in their countries. The Assembly
also invites the parliaments of Andorra, Armenia, Austria, Azerbaijan,
Monaco, the Russian Federation, Ukraine and the United Kingdom to
press their respective national governments to consider joining
the CEB at the earliest opportunity.
7. In the light of the above considerations, the Assembly recommends
that the Governing Board of the Council of Europe Development Bank:
7.1 with a view to continued rationalisation
of the CEB’s governance:
7.1.1 urge member States to enhance
the co-ordination of national positions taken by their representatives
on the bank’s collegial bodies (Administrative Council and Governing
Board) and strive to reach consensus within the Governing Board
by actively looking for compromise solutions;
7.1.2 build a graduated approach to tackling pending governance
issues by organising informal consultations among the members on
various reform options and a timetable;
7.1.3 in line with recommendations in the CEB Strategic Review
of 2008, adjust statutory provisions or agree on their interpretation
in a more flexible way so as to streamline decision-making structures;
7.1.4 simplify the voting system in the Governing Board, including
for decisions on the appointment of top officials;
7.1.5 entrust the Governor of the bank, seconded by Vice-Governors
whenever necessary, to chair the meetings of the Administrative
Council after the mandate of the latter’s current chair expires;
7.1.6 make the Governor of the bank the CEB’s external representative;
7.1.7 in addition to the Secretary General of the Council of
Europe, associate closely and invite the Council of Europe Commissioner
for Human Rights and the President of the Parliamentary Assembly,
as well as the parliamentary rapporteur on the CEB, to the annual meetings
of the Governing Board and the joint meetings of the collegial bodies;
7.1.8 consider holding one of its meetings each year in Strasbourg;
7.2 in order to further increase project quality and the pertinence
of project proposals emanating from member States, ask the CEB’s
Governor to ensure that the bank:
7.2.1 strengthens its
links with the Office of the Commissioner for Human Rights and systematically
takes into account the findings of the commissioner’s country visits;
7.2.2 fully exploits complementarities and synergies with the
European Investment Bank (EIB), the European Bank for Reconstruction
and Development (EBRD) and, whenever appropriate, other international
financial institutions;
7.2.3 assists member States concerned in building their capacity
to absorb European Union structural funds, in particular for developing
projects in priority sectors such as the judiciary, small-scale
health-care projects, social housing, asylum facilities, Roma integration
and employment-related services for young people, people with disabilities,
minorities and migrants;
7.2.4 enhances recourse to the combination of loans and grants
for the support of projects with the highest social-impact potential;
7.2.5 strengthens the monitoring and evaluation of the impact
of the projects financed in the field of employment in terms of
real and sustainable job creation or preservation in the countries concerned;
7.2.6 in line with the strategic objectives of its Development
Plan for 2014-2016, enhances the direct financing of projects, in
particular in favour of public bodies, without relying on the intermediation
of private banks, where appropriate;
7.2.7 supports member States’ loan projects aimed at implementing
the recommendations set out in the 2014 report by the Council of
Europe Secretary General, “State of democracy, human rights and
the rule of law in Europe”, notably as regards social rights and
the Disability Action Plan 2006-2015;
7.2.8 perseveres in boosting its visibility both among non-member
countries and those member States that are not active borrowers;
7.2.9 enhances the transparency of its activities.
8. The Assembly looks forward to receiving the written replies
of the Governing Board and the Governor of the CEB to the above
recommendations.
