BRUSSELS – A coalition of nineteen EU member states, including Croatia, has urged the European Investment Bank (EIB) to enhance its lending for security and defense projects.
“Given the pressing security challenges facing Europe, particularly the ongoing Russian aggression in Ukraine, it is essential to take decisive action to bolster Europe’s defense capabilities and industrial infrastructure,” states a joint letter addressed to European Council President Antonio Costa, Polish Prime Minister Donald Tusk, and EIB President Nadia Calvino.
The letter was endorsed by Belgium, Finland, Cyprus, the Czech Republic, Denmark, Estonia, France, Greece, Croatia, Italy, Latvia, Lithuania, Luxembourg, the Netherlands, Germany, Romania, Slovakia, Spain, and Sweden.
The signatories are advocating for a revision of the EIB’s restrictions on funding certain activities and are exploring the possibility of issuing joint bonds for defense initiatives.
Under current regulations, the EIB is prohibited from financing the production of ammunition, weapons, and military equipment, and any changes to this policy would require majority approval from the member states.
However, the EIB is permitted to finance dual-use products that serve both civilian and military purposes, such as satellites, drones, and radar systems.
“The dramatically altered security landscape, which impacts all member states differently, necessitates strengthening the EU’s technological and defense capabilities. A more prominent role for the EIB is crucial to meet urgent investment demands,” the letter concludes. (January 31, 2025)
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