EU calls for EUR 10 bn EIB capital boost

(BRUSSELS) - The European Commission and the European Investment Bank called Thursday for a 10-billion-euro ($12.6-billion) capital injection for the EIB as part of efforts to kickstart the EU economy.

The capital increase, presented by Commission President Jose Manuel Barroso and EIB chief Werner Hoyer, will be debated at a European Union summit on June 28-29 focused on ways to revive growth and create jobs in the 27-nation bloc.

"To restore growth in Europe, we need both reform and targeted investment," Barroso said in a statement.

"I hope that this decisive contribution to growth and jobs will receive the backing of member states at this crucial time for the European economy," he said.

The capital increase would enable the EIB to provide an additional 60 billion euros in financing over the next three years, Barroso and Hoyer argued in a letter to EU leaders.

"Including investment from other providers of finance, this would unlock up to EUR 180 billion for investments in key sectors of the EU economy," they wrote.

The idea is being pushed by the commission and the French government and does not appear to face any opposition.