the EU bank

The main remit of the Facility for Euro-Mediterranean Investment and Partnership (FEMIP) is to promote the economic development of nine Mediterranean countries. This remit is to be fulfilled by investing in two main areas: support for the private sector and the creation of an investment-friendly environment by means of efficient infrastructure and appropriate banking systems.

In line with the Barcelona Process and the Wider Europe Neighbourhood Policy, which aim to create a common Euro-Mediterranean area of peace and stability and a free-trade area by 2010, FEMIP strives to help the partner countries meet the challenges of economic and social modernisation and regional integration. Its lending operations are conducted mainly from the Bank’s own resources under the EUR 6.5 billion European Commission-guaranteed Euromed II mandate and the EUR 1 billion Mediterranean Partnership Facility.

FEMIP gives priority to financing the private sector, particularly small and medium-sized enterprises, and projects that help to create an attractive environment for local and foreign investment. In countries where economic and financial activities are still heavily dominated by the state; the development of new private sector initiatives and the modernisation of existing companies play a decisive role in generating the jobs needed each year to provide the new entrants into the labour market with employment opportunities. Developing an environment that is conducive to job creation is considered to be one of the main targets of FEMIP activity in the region.

Although contributing to the MDGs is not an explicit objective, the environment (mostly waste water treatment, pollution reduction on industrial sites and the upgrading of existing facilities), human capital (healthcare and education) and social housing also count among FEMIP’s priority objectives.