The member states of the European Union are considering expanding the role of the European Investment Bank in financing defense projects.
Located in Luxembourg, the European Investment Bank is the EU’s bank and is reportedly the largest multilateral financial institution in the world.
Recently, the bank has been particularly involved as a donor for climate action and to support Ukraine.
According to a statement adopted by EU heads of states and governments during their meeting in Brussels on Thursday evening, the European Investment Bank will adopt its lending policy.
The current definition of so-called dual-use goods — products that can be used for both civilian and military purposes, such as helicopters and drones — will need to be revised.
Until now, the European Investment Bank has only been active in the defense sector with such dual-use goods — including funding research and development.
If the bank is to invest in purely armament projects in the future, the 27-member EU bloc would need to agree to a change in its mandate.
The European Commission recently voiced support for this move. Critics have expressed concerns that the bank’s high credit rating could be affected by this change in mandate, potentially leading to increased financing costs.
EU heads of states and governments agreed that the European Commission and the Council of the European Union will explore all options to mobilize funds and provide a report by June.
The European Union is committed to enhancing its comprehensive defense readiness and its ability to meet its needs and aspirations in the face of growing threats.
In general, there is a need to increase defense spending and invest funds more effectively and rapidly.
