Joint statement by all 19 bilateral European development finance institutions on the future of European development finance

No other actor makes a more important contribution to development finance than Europe: more than half of the global financing commitments are made by the European Union and its member states. Most of the subsidised loans from Europe – EUR 27 billion in 2018 alone – are provided by bilateral European development finance institutions, including KfW. In recent months, a high-level Wise Persons Group commissioned by the Council of Europe has drawn up proposals on how the architecture of European development finance can be further developed. The group, which also included former KfW Executive Board Member Dr Norbert Kloppenburg, recently published its findings in a comprehensive report.

Prof. Dr Joachim Nagel, Member of the KfW Executive Board responsible for international financing, underscored the significance of the report: “The great strength of the European development banks lies in their wealth of experience, which is unparalleled in its diversity throughout the world. The Wise Persons Group has given us important insights into how we can capitalise even more on this potential through greater coordination and harmonisation.”

Together with the Spanish AECID, the French AFD, the Italian CdP and the EDFI Association of 15 European financial institutions focusing on private sector development (including KfW's subsidiary DEG), KfW has released a statement on the Wise Persons Group's report.

In their joint statement, the 19 bilateral development finance institutions incorporated some key recommendations of the Wise Persons Group and stressed the importance of an open EU development architecture with equal access for bilateral and multilateral European institutions to EU Commission grants and guarantees. The paper also contains concrete proposals for improvements to the existing system in order to noticeably and quickly increase the effectiveness and visibility of European development finance.