What Europe Can Teach the U.S. about Infrastructure Banks

The European Investment Bank raised $80 billion for projects last year alone. Should the Obama’s proposed program adopt a similar model?

1 minute read

October 11, 2010, 10:00 AM PDT

By Lynn Vande Stouwe


Created in 1958, the EIB offers loans, technical assistance and venture capital funding for infrastructure projects ranging from high speed rail to wind farms and solar plants. Its focus is on investments that transcend national borders and advance the continent as a whole.

Roger Rudick notes that some critics don't think the EIB system would work in the US, citing differences in institutional risk tolerance. European investors are hesitant to sell bonds for infrastructure projects, a practice commonplace in America. Some even argue that an infrastructure bank would duplicate functions of existing programs. Additionally, leveraging Obama's proposed $60 billion of funding into the estimated $2.2 trillion required to repair the country's infrastructure may prove difficult even with investment from private banks.

Political merits may outweigh initial difficulties, Roger Rudick says:

'Supporters like the idea of a funding institution that can, at least in theory, transcend local budgets, political turf wars, and election cycles For giant electric, water and rail projects that take decades to construct and cross many state boundaries, this may be just the way to leverage the private capital necessary to keep the country's infrastructure from falling apart.'

Friday, October 8, 2010 in Streetsblog

portrait of professional woman

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching. Mary G., Urban Planner

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching.

Mary G., Urban Planner

Cover CM Credits, Earn Certificates, Push Your Career Forward

Aerial view of town of Wailuku in Maui, Hawaii with mountains in background against cloudy sunset sky.

Maui's Vacation Rental Debate Turns Ugly

Verbal attacks, misinformation campaigns and fistfights plague a high-stakes debate to convert thousands of vacation rentals into long-term housing.

July 1, 2025 - Honolulu Civil Beat

Logo for Planetizen Federal Action Tracker with black and white image of U.S. Capitol with water ripple overlay.

Planetizen Federal Action Tracker

A weekly monitor of how Trump’s orders and actions are impacting planners and planning in America.

July 9, 2025 - Diana Ionescu

Green vintage Chicago streetcar from the 1940s parked at the Illinois Railroad Museum in 1988.

Chicago’s Ghost Rails

Just beneath the surface of the modern city lie the remnants of its expansive early 20th-century streetcar system.

July 13, 2025 - WTTV

Bend, Oregon

Bend, Oregon Zoning Reforms Prioritize Small-Scale Housing

The city altered its zoning code to allow multi-family housing and eliminated parking mandates citywide.

1 hour ago - Strong Towns

Blue and silver Amtrak train with vibrant green and yellow foliage in background.

Amtrak Cutting Jobs, Funding to High-Speed Rail

The agency plans to cut 10 percent of its workforce and has confirmed it will not fund new high-speed rail projects.

2 hours ago - Smart Cities Dive

Green Skid Row mural satirizing city limit sign in downtown Los Angeles, California.

LA Denies Basic Services to Unhoused Residents

The city has repeatedly failed to respond to requests for trash pickup at encampment sites, and eliminated a program that provided mobile showers and toilets.

3 hours ago - Los Angeles Public Press