European Investment Bank

Former EIB president under European investigation for corruption

European Public Prosecutor investigates former EIB president for corruption and abuse of influence, waiving immunity and opening in-depth investigation

of R.Es.

FILE PHOTO: Werner Hoyer, President of the European Investment Bank, attends the Ukraine Recovery Conference in London, Britain June 21, 2023. REUTERS/Hannah McKay/Pool/File Photo

3' min read

3' min read

Judicial investigation by the European Public Prosecutor's Office into the former president of the European Investment Bank (EIB), Werner Hoyer. The former manager, 72, is under investigation for corruption and abuse of influence and misappropriation of EU funds. He dismissed the charges as absurd and said he will cooperate with the investigating authorities.

The European Public Prosecutor's Office (acronym in English: Eppo), which deals with cases of misuse of European funds, announced the investigation this morning, pointing out that the operational arm of the EIB had accepted the prosecution's request to lift the immunity of two of its former employees and to allow searches in its offices. A few hours earlier the British newspaper Financial Times had anticipated the news of the investigation from its sources.

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The name of Hoyer, who led the bank between 2012 and 2023, was not revealed by the prosecutors, but shortly afterwards he himself issued a statement through his lawyers admitting that he was one of the two under investigation. The former official specified that the investigation concerns cash compensation paid to another outgoing bank employee, which he had signed as president following 'the instructions of the department dealing with the matter and the secretary general of the EIB'.

"The accusations against me," Hoyer continued, "are definitely absurd and unfounded. He added that he was cooperating fully with the authorities and asked the EIB to do the same. A Bank spokesman said: 'We will cooperate with the European Public Prosecutor's Office as requested' without adding any comment on the ongoing investigation. Hoyer's lawyer, Nikolaos Gazeas, said that his client had to sign the agreement now under investigation and that he was not involved in the negotiations, having instead acted on the basis of a memo submitted to him by other managers, who had assured him that the deal had been legally approved and subject to all controls.

Hoyer is a German economist and Free Democratic Party politician. The European Investment Bank is the division that deals with credit on behalf of the European Union and the largest multilateral credit institution in the world, with a firepower of more than EUR 500 billion. It is based in Luxembourg.

According to a reconstruction by the Financial Times, in his two terms at the helm of the Bank, Hoyer played an important and crucial role in steering the institution's operations towards a greener agenda in line with the EU's Green Deal, but at the same time resisted calls to take on more risk. According to the Ft. reconstruction, by leading the bank in the years following the Eurozone debt crisis, Hoyer made it the greenest multilateral bank by calling for an exit from fossil fuel lending and allocating more funds to climate change action.

To succeed him at the helm of the EIB was Nadia Calviño, former Spanish deputy premier, who took over in December at the end of Hoyer's second term. Responding to questions from Ft, Hoyer said: 'The accusations against me are totally absurd and unfounded. I now expect them to be fully investigated and clarified and I ask the EIB to cooperate with the Eppo; I demand full clarity on the facts from the authority'. This is indeed, underlines the City newspaper, the most important and high-level case opened by the European Public Prosecutor's Office, which, like the EIB, is based in Luxembourg and started operations in 2021.

According to Hoyer's lawyer, it was the former EIB president who asked for his immunity to be lifted in order to shed full light on the facts. "From a legal point of view," he added, speaking to the Financial Times, "one should be aware that the legal requirements for starting a criminal investigation by Eppo are very low. It is therefore not unusual in legal terms for someone who has signed an agreement to become the subject of an investigation. My client was never involved in the negotiations concerning the employee's departure from the EIB'.

EU employees enjoy immunity from prosecution unless it is removed by the institution's management. Calviño informed his staff at the top of the EIB yesterday that the Eppo is investigating his predecessor.

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