Unwin attacks flagship TENs transport projects as ‘gimmicky’

Date: 16/12/1999

By Tim Jones

OUTGOING European Investment Bank President Sir Brian Unwin has dismissed the EU's hit-list of showcase transport networks as “gimmicky” and warned against politicising top jobs at international agencies.

In a parting shot after six years in his post, Unwin also warned EU governments against putting pressure on the bank to 'waste' money by lending in Russia.

“I think the Trans-European Networks list was gimmicky,” Unwin told European Voice as he prepared to hand over the reins to former Belgian Finance Minister Philippe Maystadt. “These things tend to come and go according to fashion and TENs appeared as though nobody had ever thought of them before. If you produce lists, every member state has to have an equal number on it and some may not be as top priority as others.”

The EU's Essen summit five years ago this month approved a priority list of 14 high-speed rail, road and airport infrastructure projects, allowing them preferential access to a €2-billion credit line from the Union budget. As the majority of the projects approach completion, some EU politicians have called for a new list to kick-start delayed schemes.

Unwin, supported by six northern member state finance ministers, fought off attempts by the European Commission and the French government in 1994 to issue 'Union bonds' worth tens of billions of euro to raise sure-fire long-term capital for these projects.

He insists that experience since then has borne out his stance. “These projects never lacked loan finance; there is plenty of loan finance around and we could provide it,” he said.

Over the past five years, the EIB has channelled €33 billion into trans-European transport, energy transfer and telecommunications networks and lent money to extend them into EU applicant states.

“The real reasons for the delays were, in certain critical cases, lack of subsidy, or a combination of legal, administrative, planning delays,” said Unwin, pointing out that the new high-speed rail link between Paris, Strasbourg and southern Germany was only now going ahead because the French authorities agreed reluctantly to pay €2.4 billion of the €3.1 billion needed for the project.

He believes that the massive German-Austrian-Italian rail and tunnelling project through the Brenner pass is a prime example of bureaucratic problems.

Unwin also underlined his opposition to pressure from some governments to start lending in Russia. “If they had been prepared to give a 100&percent; guarantee to the loan and want to waste money, then that was their responsibility,” he said. “I should imagine that, at the moment, they are jolly glad that no commitment was given.”

Unwin, who was formerly the administrative chief of British customs, also expressed concern that top international posts could be shared out among politicians. Following Maystadt's appointment to the EIB and the row earlier this year over who should head the World Trade Organisation, speculation has grown that the International Monetary Fund chairmanship might go to leading British, German or Japanese politicians.

“I think Philippe is an outstanding choice for the bank and will command the international respect that the bank needs,” said Unwin. “But I think it would be regrettable if major international jobs did all start becoming political.”