The economic and financial consequences of Britain’s decision to exit the EU are beginning to unfold. Sterling has plunged; the markets remain jittery; and investment decisions are on hold. All this was predicted, but no attention has been paid to the damaging consequences of the UK’s exclusion from the European Investment Bank if we leave the EU.

The EIB, the EU’s “house bank”, is the world’s largest multilateral lending institution, borrowing and lending twice as much as the World Bank. Founded under the Treaty of Rome of 1957, its shareholders are the EU member states and its primary function is to promote the balanced economic development of the EU.

It does this by raising funds through bond issues on the world’s capital markets, and lending them long-term and on a non-profit basis for technically and financially viable projects deemed likely to promote economic development. No subsidy or direct call on the taxpayer is involved. The EIB raises its funds on the strength of the rating accorded to it by virtue of the capital provided (mostly subscribed rather than paid-up) by the member states.