EDA & EIB: One Year of Financing EU Defence Projects

Facilitate access to finance EDA and EIB mark a year of work on financing EU projects in defence

2026-03-04 Source: Press release EDA, adapted by 2 min Reading Time

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The first year of a landmark cooperation agreement between the European Investment Bank (EIB) and the European Defence Agency (EDA) has delivered tangible progress in channelling finance towards the European Union’s defence sector.

André Denk speaks at the EIB Group Forum on 3 March 2026(Source: EDA) — André Denk speaks at the EIB Group Forum on 3 March 2026
(Source: EDA)

In 2025, EDA advised the EIB on EU projects in defence seeking financing worth up to €700 million. These are projects aligned with EU defence priorities and mark a significant shift in the EIB Group's engagement with the sector, with more than €4 billion invested in security and defence in 2025. The funding is targeting infrastructure, research and development and supply chain resilience, reflecting a broader push to reinforce Europe’s strategic autonomy amid heightened geopolitical tensions.

EIB Vice-President Robert de Groot said: “EDA has been instrumental in supporting the EIB in deploying our Security and Defence Action Plan. This is for us a long-term commitment, and EDA’s guidance has been essential from day one. In helping to assess the contribution of projects to the EU’s strategic defence priorities and defence preparedness, the technical and policy input from EDA has been a real support to the EIB in its decision-making process.”

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EDA’s Chief Executive André Denk said: “In 2025, EDA supported assessment of projects worth as much as €700 million. Our cooperation is delivering results and will remain firmly focused, while refining and expanding the practical ways through which EDA can continue to support the EIB.”

Vice-President de Groot and Chief Executive Denk attended the EIB Group Forum in Luxembourg on 3 March 2026.

Expertise

By aligning investment with commonly agreed priorities, the EIB and EDA aim to avoid fragmentation and ensure that resources are directed towards security and defence projects with the highest added value at European level.

Building on the Memorandum of Understanding (MoU) signed in 2018, an updated agreement between the EIB and EDA was signed on 3 October 2024 and serves as the basis of today’s progress. It aims to facilitate access to finance for companies, particularly small and medium-sized enterprises, working on projects that contribute to capability development, innovation and industrial competitiveness.

The EIB-EDA cooperation in analysing potential investments is showing crucial as it allows financing to tackle the investment gaps across Member States. According to officials, joint workshops and technical exchanges have helped clarify eligibility criteria and reduce uncertainty for firms seeking EIB backing. The EIB has also expanded eligibility for security and defence financing and has established the Security and Defence Office, enabling faster assessment of proposals.

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