Speech by Governor Carlo Monticelli at Autumn session of the Council of Europe Parliamentary Assembly

Strasbourg - Debate on the PACE report on the CEB.
The Council of Europe Development Bank: implementing the Reykjavík Declaration

President Rousopoulos,

Distinguished Members of the Parliamentary Assembly

I am truly honoured to be with you today for the first time since I became Governor of the Council of Europe Development Bank, the CEB as we call it.

At the outset, I would like thank the rapporteur, Madame Eka Sepashvili, for her valuable introduction and her words of appreciation for the CEB's many achievements. I also sincerely thank her and the Committee for their clear and comprehensive report, which we warmly welcome.

Five years have passed since a report on the activity of the CEB was presented to your honourable Assembly. Since then, the world has become a more dangerous and unstable place - a world where too often the threats to and violations of the very founding values of the Council of Europe are rampant and cause unfathomable suffering.

A series of overlapping and compounding crises - the COVID pandemic, the intensifying of climate change, Russia's aggression against Ukraine, the spillovers from other wars and widespread geopolitical tensions - have materially worsened the lives of many, especially those who are most vulnerable in our societies.

In these difficult times, the CEB is determined to redouble its efforts in delivering on its mission of strengthening social cohesion.

Why?

Because now - exactly as 68 years ago when the Bank was established - social cohesion is an indispensable building block of progress and sustainability. Cohesion and inclusiveness are not only essential components of the social contract underpinning democracies. They are a necessary factor for economic growth: to make it happen, to make it sustainable.

Cohesion and inclusiveness may seem abstract, elusive concepts. But they are not. They are the result of innumerable, consistent and persistent actions in education, employment, health, social housing which concretely ensure that all members of our societies can satisfy their essential human wants.

How does the CEB help in this endeavour? By providing financial and technical assistance to specific projects in the social sector so that they are implemented: building, furnishing and refurnishing schools and hospitals; providing social housing; supporting the reconstruction after natural disasters; mitigating the effects of climate change…

The list could go on.

Indeed, I could spend hours to describe in detail the marvelous projects we have financed - and trust me you would be thrilled, not bored, given the improvements they brought about in the life of so many people.

By supporting investment in social sectors, the CEB translates the fundamental rights of the Council of Europe into concrete, tangible improvements in the daily lives of European citizens, helping to build fairer and more inclusive societies.

Crises and the shifting context surrounding our activity have required the CEB to modify the way it operates to maintain its capability to deliver results. With dedication and resolve, the CEB has embraced the necessary change. We have been continuously adapting, developing new instruments to be better fit for purpose.

Most importantly, we have adopted a new compass, the CEB's Strategic Framework 2023-2027, which guides our operations, doubling down on our social mission.

The needle of this compass is the vulnerability lens. This is a concrete operational approach which - on the basis of well-defined criteria that take into account the different aspects of vulnerability - enables us to better target our activities in favour of the most disadvantaged members of society.

To implement this strategy, the CEB was granted new resources. Thanks to a historic decision in December 2022, our member countries approved the first-ever capital increase for the Bank with additional paid-in resources. In this way they have expressed a strong vote of confidence in our ability to deliver on our mandate. We are grateful for that.

The additional resources have made the CEB better able to respond to our membership's most pressing needs.

Ukraine provides a stark example of that. The capital increase allows the CEB to operate in the country, which joined the Bank in June 2023, with a non-negligible envelope of €1.2 billion by 2027.

As in the CEB's tradition, we have delivered fast. Less than a year after Ukraine's accession, we have already approved €200 million in loans to bolster housing and healthcare. We have finalised the projects and started disbursing in record time so that over 2,000 families who lost their homes will be shortly rehoused.

I was in Ukraine two weeks ago to take stock of the progress on the ground and discuss further collaboration with the authorities, especially in assisting with Internally Displaced Persons and developing micro and small businesses.

I could witness, firsthand, the unbelievable courage and resilience of the Ukrainian people as well as the dedication of the authorities. I am extremely proud that the CEB can play a critical role in immediate assistance and reconstruction.

I am even prouder of the results achieved in Ukraine, because they represent the material response to the call by Heads of State and Government at the Reykjavík Summit for the CEB to implement the Action Plan for Ukraine.

Leaders there also urged the Bank to focus on the social dimensions of climate change and environmental degradation, and to help member states achieve a fair and inclusive transition that leaves no one behind.

We deliver decisively on this call too. The CEB's Strategic Framework recognises the link between climate change and its social effects. We do integrate climate mitigation and adaptation into our social projects, fostering a just green transition. Indeed, in 2023, 50% of the CEB's activities had climate co-benefits.

***

President Rousopoulos,

Honourable Members of the Parliamentary Assembly

The world has drastically changed over the last five years. The CEB has evolved with it, redoubling its efforts and adapting the way it operates to deliver on its mandate, which is today more relevant than ever.

The CEB provided crucial support to its member countries during the unprecedented crises that hit our societies. We have grown stronger in membership and financial capacity, establishing ourselves as the social development bank of Europe.

But we are not complacent.

In these difficult times when the founding values of the Council of Europe are increasingly threatened, the Bank remains entirely committed - as its financial arm - to uphold them. We contribute to this critical mission by financing impactful social projects which help strengthen the social fabric of our member countries.

This is not meant to be a mellifluent but abstract promise. It is meant as a concrete and operational pledge to action.

We do stand ready to contribute our expertise and financing to pursue the Council of Europe's and this Assembly's objectives by supporting projects consistent with our mandate.

To be even more effective, we also seek your help in raising awareness about the CEB, about the support we can concretely dispense to your countries, to your regions, to your very own constituencies.

We remain here at the service of the Council of Europe, at your service. Make use of us.

Thank you for your attention.

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