On 22 November, the European Investment Bank (EIB) presented the results of its survey on municipal investment in the European Union.
From May to August 2017, the institution interviewed 555 European municipalities to gather information on their investment activities, needs, difficulties and financing requirements. The results are weighted by the urban population of each country.
This overview presents selected findings on how much cities have invested in infrastructures and what are the main challenges and barriers they tackle when they develop and implement investment policies.
-42% of municipalities in the EU report an increase in investment activities;
-43% of municipalities expect their investment to focus on repair and maintenance in the next 5 years;
-33% more municipalities report under-investment in the last 5 years than over-investment;
-More than half of municipalities in EU carry out independent ex ante assessments of infrastructure project quality, but only 40% both do this and take these assessments into account;
-The main barriers to infrastructure investments for EU municipalities are tight budgets and the length of approval process, as well as political and regulatory stability and technical capacity;
-External finance represents some 20% of municipalities’ investment financing, with Banks and National Promotional Banks (NPBs) providing 80% of such external finance.
Debora Revoltella, chief economist of the European Investment Bank (EIB), shared some initial findings from this latest EIB survey during EUROCITIES Economic Development Forum meeting in Vienna last October.
The overview of the survey is available on EIB website.