BRUSSELS/LUXEMBOURG (ANP) – In anticipation of the upcoming European defense summit next Monday, nineteen European leaders are urging the European Investment Bank (EIB) to assume a “stronger role” in enhancing the defense sector. They are calling for a “reassessment” of the bank’s credit policies to ensure they are “more precisely” defined and to minimize the exclusion of candidates.
In a letter to the EIB, Dutch Prime Minister Dick Schoof and his eighteen counterparts stressed the importance of maintaining the bank’s creditworthiness.
The leaders are advocating for the EIB to allocate more funds specifically for investments in security and defense. They also proposed the issuance of special defense bonds to facilitate investments from individuals.
Over recent decades of relative peace in Europe, the continent’s arms industry has experienced stagnation. Financial institutions have increasingly refrained from investing in arms manufacturers and related companies, influenced by their internal policies and international agreements. This has created significant challenges for EU nations eager to scale up their defense capacities in response to current threats.
Many EU countries have long been urging the EIB to increase its investments in defense and to motivate other financial institutions to follow suit. Concerns had been raised, particularly from Berlin, regarding potential impacts on the investment bank’s credit rating. However, a strong coalition is forming, including major players like Germany, France, and Spain.
Last year, the EIB made some adjustments to its investment rules, no longer disqualifying investments in dual-use products, such as certain drones that can serve both civilian and military purposes.
(January 31, 2025)
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