EIB: New agreement signed to provide additional €2 billion to back the reconstruction of areas hit by central Italian earthquake

This article is published in association with European Investment Bank.

• Total EIB support for earthquake-affected regions in central Italy has reached €4.75 billion – almost 15% of the €27 billion estimated by the government to be needed for reconstruction.
• The financing package approved by the EIB Board of Directors will be split into a €1 billion direct loan to the Ministry of Economy and Finance for the reconstruction and repair of public infrastructure and another €1 billion channelled into the banking system via Cassa Depositi e Prestiti to back the reconstruction of private, residential, and industrial property.

The European Investment Bank (EIB) is further bolstering its commitment to back reconstruction and safety work in the central Italian regions hit by the 2016 and 2017 earthquakes, announcing the approval of a new €2 billion financing package.

The project agreement – guaranteeing that these additional funds will reach final beneficiaries in line with the sustainability and safety criteria required by the EIB – was signed today in Rome by Extraordinary Government Commissioner for Post-2016 Earthquake Reconstruction Guido Castelli and EIB Director General of Operations Jean-Christophe Laloux.

This new financial package will lay the groundwork for a potential €1 billion financing contract between the Ministry of Economy and Finance (MEF) and the EIB to support the reconstruction and repair of public assets, as well as an additional €1 billion agreement between the EIB and Cassa Depositi e Prestiti (CDP) to finance, through the banking system, the reconstruction of private, residential, and industrial buildings.

This €2 billion financing package will bring EIB support for reconstruction in the regions of Abruzzo, Lazio, Marche and Umbria to a total of €4.75 billion, almost 15% of the €27 billion estimated by the government to be needed for reconstruction.

“The support provided to the Central Apennines region of Italy via the signature of this agreement is a major step forward in the reconstruction and renewal of the area,” said Extraordinary Commissioner for the 2016 Earthquake Guido Castelli. “Past support from the EIB shows the closeness and spirit of cooperation that unite the EU institutions and Italy and result in concrete policies to redevelop the central regions safely and sustainably. A spirit of cooperation also defines the partnership between the commissioner’s office and Cassa Depositi e Prestiti to manage the central Italian earthquake fund for private reconstruction, disbursements from which increased by 16.64% in the first six months of 2024 compared to the same period in 2023, and 41.71% compared to the amount recorded in 2022. We want to continue increasing this amount with actions including the use of this new financial package.”

“We are pleased to further expand our support for the communities affected by the earthquakes, enabling them to rebuild safely and sustainably while also improving the quality of infrastructure and the services provided,” said EIB Director General of Operations Jean-Christophe Laloux.

Background information

The European Investment Bank (EIB) is the long-term lending institution of the European Union owned by its Member States. It provides long-term financing for sound investments that contribute to EU policy. The Bank finances projects in four priority areas: infrastructure, innovation, climate and environment, and small and medium-sized enterprises (SMEs). In the past five years, the EIB Group has provided more than €58 billion in financing for projects in Italy.