External publications

Beyond banking? An institutional logics perspective on the European Investment Bank’s approach to fragile states

Bergmann, Julian / Benedikt Erforth
External Publications (2026)

New Political Economy, first published 22.05.2026

DOI: https://doi.org/10.1080/13563467.2026.2676609
Open Access

The European Investment Bank (EIB), the world’s largest multilateral financial institution, has supported projects in over 160 countries, including fragile and conflict-affected states (FCSs). Following Russia’s full-scale invasion of Ukraine, the EIB adopted its first Strategic Approach to Fragility and Conflict in 2022. While the bank has a history of operating in FCSs, this strategy signals its ambition to strengthen the bank’s focus on state fragility. What is driving this shift and how does it align with the EIB’s traditional emphasis on financial sustainability and risk aversion? This paper examines the drivers of the EIB’s engagement with fragile states through an institutional logics lens, identifying three core logics embedded in the bank’s identity: development, investment and bureaucratic logics. The analysis shows that although development and bureaucratic logics strongly shape the new strategy, the investment logic – anchored in financial prudence – continues to influence lending practices. This finding suggests that the progressive rhetoric on fragility is constrained by institutional caution.

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