The funding included €2bn for earthquake reconstruction in Italy and the EIB’s first-ever support for PPP investment in social housing through a new initiative in Ireland.

The EIB will also be financing new schemes approved by EU member state shareholders and the European Commission, which includes the rehabilitation of public buildings, social housing and cultural heritage in Florence.

€5bn will also be used to support lending programmes by local banks in Spain, Portugal, Cyprus, Hungary, the Netherlands, Ireland and Morocco which support SMEs.

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Meanwhile, more than €1bn of new financing has been approved for climate-related investment, including the construction of zero-energy buildings in Scandinavia.

“Climate change is one of the greatest challenges facing our planet and future generations,” said Werner Hoyer, president of the EIB.

“Ten years ago, the EIB issued the world’s first green bonds and this pioneering engagement to support climate action and the EIB’s longstanding commitment to unlock climate-related investment essential to reduce emissions is reflected in the broad range of schemes approved today.”

Negotiations for approved loans are expected to be finalised in the coming months and all projects earmarked for support under the EU budget guarantee need to receive approval from the EIB board prior to being finalised.