Michael McGrath (Cork South Central, Fianna Fail)
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136. To ask the Minister for Finance if he or his officials have been involved in discussions regarding the possibility of injecting additional capital into the European Investment Bank as a result of the UK's planned departure from the EU; his views on the possibility of the UK remaining a member of the EIB after it leaves the EU; the consequences for Ireland if the UK is no longer a member of the bank; and if he will make a statement on the matter. [38305/18]

Paschal Donohoe (Dublin Central, Fine Gael)
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When the United Kingdom exits the EU on 29 March 2019, its departure from the EU will also mean that it will stop being a shareholder of the European Investment Bank (EIB). Article 308 of the Treaty on the Functioning of the European Union states that: “The members of the European Investment Bank shall be the Member States”. As a result, the UK will not remain a member of the EIB after it leaves the EU.

Once the UK stops being a shareholder of the EIB, the capital it has provided to the EIB will no longer be part of the Bank’s subscribed capital base. In recent months, the shareholders of the EIB, including Ireland, have been actively discussing means by which the capital base of the EIB can be strengthened to compensate for the loss of the UK shareholding. This may include, redenomination of some reserves and potentially an adjustment in the shareholdings of the EU Member States.

Assuming a positive outcome and applying the provisions in the Withdrawal Agreement on the repayment of the UK’s capital, the effect of UK withdrawal on EIB’s operations and financial capacity should be mitigated. This would include any direct impact on EIB lending to Ireland. The future relationship between the UK and the EIB will be subject to the broader negotiations on the future relationship between the UK and the EU.