Financial Transparency Coalition

The European Commission has launched a series of investigations into the tax structures of companies like Google, Apple and Amazon, for fear that they are siphoning off tax revenue from Europe. Far less attention has been paid to the role of institutions like the EU-backed European Investment Bank (EIB) in financing this offshore trade, particularly when it comes to developing countries. Could this change? 

The EU must prove itself as a promoter of development, by ensuring that more funds flow from the North to the South rather than vice versa. The case of tax-dodging Zambian copper mining company Mopani, shows that money from the ‘EU bank’ – The European Investment Bank (EIB) – continues to find its way into tax havens. The EU likes to purvey itself as a benefactor for the developing world. It is the largest ODA donor and proponent of many policy documents underwriting its engagement to promote sustainable development in developing countries. However, partly due to a...