The European Investment Bank (EIB) is exploring options to increase its support for the defence industry within the European Union to enhance the bloc’s security amid rising concerns over Russia’s activities, Bloomberg reports.
Discussions are underway between the EIB, the European Commission, and other stakeholders regarding potential investments in military companies involved in producing defense-related goods, according to informed sources.
EU leaders will address the EIB’s role in strengthening defense capabilities during an upcoming meeting.
Earlier this month, the EU announced an initial allocation of €1.5 billion (approximately $1.6 billion) to bolster the defense sector. However, European Commissioner for Industry Thierry Breton has called for significantly larger investments, amounting to €100 billion.
EIB President Nadia Calviño has expressed readiness to support joint projects aimed at boosting European industry and improving Europe’s protection and deterrence capabilities.
Leaders of the EU are expected to urge the bank to review its policies regarding the financing of dual-use goods and military industry infrastructure.
Currently, the EIB is prohibited from financing activities involving ammunition and weapons, as well as equipment or infrastructure intended for military or police use.
The EIB is one of the largest bond issuers in the region, with outstanding debt totaling nearly €430 billion across various currencies.
In addition to conventional bonds, the bank issues securities focusing on sustainable development, financing initiatives such as healthcare and education accessibility.
Potential changes at the EIB could involve revising its policy to allow financing of military infrastructure not intended for direct military purposes.
This may also include financing materials, components, and equipment for manufacturing facilities involved in producing ammunition.
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