57th CEB's Joint Meeting (Reykjavík, 7 June 2024)

As prepared for delivery

I am honoured by the warm welcome extended to us by the Minister of Finance and Economic Affairs of Iceland, Mr. Sigurður Ingi Jóhannsson, and the people of Iceland.

Your remarkable country, which is a founding member of the CEB, encapsulates the social values we all uphold, of inclusiveness, equality and shared prosperity. The CEB is proud to have played its part by funding 10 social investment projects in Iceland over the years. A new loan under consideration today aims at supporting government efforts to address the social impact of the ongoing volcanic crisis, an issue at the heart of this year’s Joint Meeting.

Ladies and gentlemen, our Bank’s mission is to foster social cohesion and solidarity in Europe. But we all face multiple difficult challenges: a fragile economy, surging migration, environmental tragedies, a climate emergency, and above all, a war on our continent. These seemingly never-ending crises are taking a toll on the wellbeing of our citizens, particularly the most vulnerable.

The challenges we face are interwoven – this point was emphasised by Heads of State and Government at the 4th Council of Europe Summit in this city a year ago. In the Reykjavík Declaration, they encouraged the CEB to focus on the social dimension of climate change, and the goal of a just transition.

We embrace this approach – social action is essential for climate action! Climate is already a key element of our Strategic Framework 2023-2027.

Ladies and gentlemen, 2023 was an exceptional year for the CEB.

As well as welcoming Ukraine as our newest member, we regained our triple-A rating with the major credit rating agencies, leveraging your historic agreement to strengthen the Bank’s capital base, and reinforcing our ability to raise funds at favourable rates, for your benefit and that of your citizens.

I am pleased to report that the CEB is actively building on this progress. Since January we’ve approved 15 new loans amounting to around €1.5 billion – the projects for approval by the CEB Administrative Council today would lift that total to over €2.5 billion for the year so far.

All CEB loans and grants, large and small, matter for strengthening the social fabric of our member countries, for instance, by spurring business and job creation among vulnerable groups, providing energy-efficient homes for low earners, or improving opportunities for youth, as well as support for old people and people with disabilities.

CEB funding is helping Ukraine repair war-damaged homes and restore its health services.

And it is supporting Türkiye in the wake of the devastating earthquakes of February 2023, most recently with a loan for the construction of 12 seismic-resistant emergency hospitals.

In fact, disaster risk management has long been a hallmark of the CEB, and today we are actively engaged with projects in 11 member countries, with loans of around €2 billion, aimed at preventing and managing the effects of earthquakes, flooding and wildfires.

The CEB’s unique and vital contribution to social cohesion in Europe has enabled our Bank to evolve its international role alongside peer multilateral development banks.

Our partnerships, with the EU, other multilateral development banks and national and local institutions, help improve our effectiveness on issues such as sustainable development and climate change.

They enable co-financing too, benefitting nearly a quarter of our loan approvals in 2023.

The growth on international markets of our trademark Social Inclusion Bonds is further testimony to the value we bring. In April, total SIB issuance since their launch in 2017 surpassed the €10 billion threshold!

But our unique value also lies in the close attention we devote to each project locally, working within communities, alongside stakeholders and beneficiaries.

It is by engaging in this way that the CEB succeeds in translating the values of the Council of Europe into tangible improvements in people’s lives and strengthening social cohesion.

Ladies and gentlemen, thanks to your strong support and the dedication of our staff, the CEB is better prepared for the tough challenges ahead. We all share the goal of a more inclusive, equitable, and resilient Europe.

To reach it, we must work harder, together.

On this note, allow me to close by quoting Icelandic writer and Nobel laureate, Halldór Laxness*:

“The goal to be reached and the determination to reach it are brother and sister, and slumber in the same heart.”

Thank you.

* Independent People: An epic by Halldór Laxness