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Our commitment in Europe

On behalf of the German Federal Government, KfW Development Bank cooperates closely with European institutions both at EU and member states level to further increase the effectiveness of European development cooperation (DC). This includes not only cooperation with the EU Commission, but also coordination with other European development organisations. A particularly efficient instrument for mobilising capital is so-called EU blending. This is the combination of grants from the EU and loans from development banks with the aim of facilitating larger investment projects and making even more efficient use of public EU development funds. Blending makes it possible to offer low-interest, long-term financing for important infrastructure projects in developing countries and emerging economies.

Together with the EU, KfW supports the countries of the EU Neighbourhood Regions in Central and Eastern Europe, the Balkans or the Mediterranean on their way to Europe. Through our field offices in the respective capitals, we work directly with our partners on the ground and on the pulse of events. How people are doing there, what moves them and what hopes and challenges they associate with Europe – all this is described in the articles of our series "European perspectives", where local employees and partners regularly have their say.

European perspectives

Moldova turning to the West

For decades Moldova was under the influence of Russia. With KfW's support, the small state is seeking to join the European Union economically and politically. In an interview, Dumitru Burdianschi, Minister of Finance of the Republic of Moldova, comments on the situation.

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Serbia on its way to the EU

Serbia and the European Union have been in negotiations on EU accession since 2014. KfW promotes the country's advancement with a focus on the topics of urban development, energy/environment and employment.

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Georgia on the fast track

The direction is clear: Georgia is heading for Europe, applying for EU membership. But reforms are still necessary to qualify for admission. On behalf of the German Federal Government, KfW is supporting the country in this.

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Card of KfW locations
KfW offices in the EU Neighbourhood Regions

With the jointly funded projects, KfW supports the EU in achieving its development policy goals, contributing its expertise, local presence and long-standing partner relationships. As in bilateral cooperation, the topics of sustainability, climate protection, digitalisation and sustainable infrastructure are at the top of the agenda - an important contribution through which KfW flanks the European initiatives. The EU is also joining forces under the umbrella of "Team Europe" to contain the Corona pandemic. In order to harness Africa's potential and resources for sustainable development, the Federal Government has developed the EU-Africa Strategy together with the EU. Economic partnership agreements between the EU and African states are intended to serve Africa's economic and social development.

Within Europe, there is particularly close cooperation with the French development bank Agence Française de Développement (AFD) and the European Investment Bank (EIB) in the form of the Mutual Reliance Initiative. This includes the exchange of personnel and the development of joint processes in order to act more efficiently and with a greater division of labour, as well as to reduce the workload for the partners on the ground. All institutions contribute their specific strengths and experience.

KfW's commitment in Europe

EU Actions implemented by KfW (XLSX, 52 KB, non-accessible)

Agence Française de Développement (AFD)

European Investment Bank (EIB)

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    Supporting small businesses during and after the Corona pandemic

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    Protecting valuable water resources

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