The EIB, the largest multilateral lender, will double its funding for defence and security from €1 billion to €2 billion by 2025. Its group president defends a proactive approach to both sectors within the bank’s remit. “We are not a defence ministry,” she said on Thursday.
The European Investment Bank (EIB) is targeting a €95 billion investment in 2025, supporting initiatives ranging from clean-tech and AI to affordable and sustainable housing and climate action—while allocating just €2 billion to Europe’s security and defence industry.
“I want to be very clear: we are not a defence ministry. We are Europe’s investment bank, and we are fulfilling our mandate with a very proactive approach,” EIB Group President Nadia Calviño told reporters during the presentation of the EIB’s 2024 results.
In March 2024, the European Commission urged the EIB to revise its lending policy, which currently excludes financing for purely military projects, to help Europe boost its defence production.
However, when asked by journalists, Calviño declined to say whether the Bank intends to support purely military projects, instead emphasizing the EIB’s role in this sector and its commitment to preserving its financing capacity.
“This is the only sector where the EIB has taken an extremely proactive approach—constantly testing the market and identifying where the Bank can make a difference,” she added.
Last year, the EIB doubled its support for eligible security and defence projects to €1 billion and is set to reach €2 billion in 2025.
Calviño argued that the EIB Group has already expanded its eligible investments in dual-use projects, now including border protection, military mobility, space and cybersecurity.
“We are currently assessing 14 projects, which we expect to be approved in the coming months. The European Investment Fund is also engaging with various investment funds dedicated to security and defence,” she noted.
The EIB is the world’s largest multilateral financial institution by assets and maintains a robust AAA credit rating. However, some EU countries—particularly neutral ones—have expressed concerns that financing defence could jeopardize the Bank’s creditworthiness.
During a European Parliament event in December, EU Commissioner for Defence Andrius Kubilius criticized the EIB’s limited investment in defence compared to green financing.
“Next to €1 trillion [for green financing], you have only €6 billion for defence [available under the Strategic European Security Initiative]. This is wrong because, in my view, investing in defence is investing in peace,” the former Lithuanian prime minister said.
To stay competitive against global players like the US and China, the EU must invest €700–800 billion annually over the next decade to modernize its economy, strengthen security, and advance the green and digital transitions, according to Mario Draghi’s report on competitiveness.
To channel these investments, both public and private capital will be needed. The European Commission has already called on the Luxembourg-based EIB to maximize its capacity to attract private investment and bridge Europe’s investment gap in key sectors, including defence and decarbonization.
In 2024, the EIB mobilized €100 billion for EU energy security projects, including grids, interconnectors, renewables, and net-zero industries. It also invested €38 billion in promoting social and territorial cohesion and €51 billion in supporting the green transition, climate action, and environmental sustainability.
“Climate and competitiveness are a winning combination for Europe, and it is a no-brainer that we need to invest more in energy security to support key sectors driving the green transition and our most promising innovators,” Calviño highlighted as top priorities for 2025.
ADVERTISEMENTNext year, the EIB plans to scale up support for innovators and start-ups, as well as for farmers, food resilience, and mitigating intensifying droughts.
“Every euro invested in prevention and adaptation saves €5 to €7 in reconstruction and repairs,” Calviño said.
Read the full article here