The European Investment Bank (EIB) falls significantly short of usual EU banking standards in terms of oversight and control, according to the Bundesrechnungshof (Federal Court of Auditors). In a special report, the auditors said that around three- quarters of the EIB's financing is not subject to independent external control. President of the Bundesrechnungshof Kay Scheller has warned of a „significant liability risk“ that also poses a threat to the federal budget.

The Luxembourg-based EU development bank, which approved financing amounting to 84 billion euros in 2023, has a balance sheet total of 547 billion euros. The subscribed capital of EU member states amounts to 248.8 billion euros. Of this, Germany, along with France and Italy the largest shareholder, accounts for 46.7 billion euros. Additionally, according to the Court of Auditors, Berlin has bilaterally provided additional funds. The EIB also receives further money from the EU budget, for which Germany would also be indirectly liable.

In the case of losses that the EIB could not cover itself, EU states would have to provide additional capital, warned Scheller, who is not alone in his criticism. The Austrian Court of Auditors (SAI) has also identified structural deficiencies in the EU bank's oversight and control framework. In a joint report, both organisations now recommend increasing transparency and accountability to reduce risks to national budgets.

Currently, the European Court of Auditors does have a mandate to audit the EIB. However, this mandate only applies to activities financed or secured through the EU budget. In contrast, financing conducted by the EIB based on its subscribed capital and at its own risk is not subject to independent control. The report pointed out that while an internal audit committee checks for compliance, it does not assess the effectiveness or efficiency of resource use. This „audit gap“ affects an estimated three-quarters of the EIB's activities.

In a statement, the German Ministry of Finance emphasised that professional structures, effective risk management, and adequate oversight are of central importance. The EIB has recently initiated reforms and made significant progress in these areas. Nonetheless, the Ministry will argue in favour of further improvements. The EIB itself does not see the need for changes, and referred to its special status as a multilateral financing institution.

The Court of Auditors urges the federal government to push for better financial control of the EU bank, and to ensure that the Bundestag is involved early and comprehensively in EIB decisions in the future.