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The European Commission and the European Investment Bank (EIB) have unveiled a new €5 billion flexible guarantee, designed to unlock up to €10 billion in investments in clean energy, infrastructure, and SME financing across key regions outside the EU.
Announced at the 4th International Conference on Financing for Development, the initiative is part of the EU’s Global Gateway strategy, targeting regions including North Africa, the Middle East, Eastern Europe, Central Asia, and Latin America.
The guarantee represents a key shift in EU external investment policy by extending eligibility beyond state-backed entities to include independent public bodies and private companies. This broader scope is expected to accelerate funding and support high-impact projects that may be considered too risky for traditional lenders.
“With today’s new type of guarantee agreement, it will be more flexible and faster to back up investments,” the EU and EIB said in a joint statement.
The mechanism will support strategic infrastructure, such as energy and telecommunications networks, enhance municipal financing in EU enlargement areas, and bolster economic resilience in neighbouring countries. It also aims to advance major initiatives like the Transcaspian Corridor and secure critical raw material supply chains.
By reducing financing risks, the guarantee is expected to mobilize capital more efficiently, keep borrowing costs affordable, and catalyse sustainable development across partner regions.
