Strengthen Europe's Competitiveness EU Development Bank Invests Four Billion in Defence

Source: dpa 2 min Reading Time

Russia's war against Ukraine continues, and the geopolitical situation has further shifted, even with Donald Trump as President of the United States. Europe's investment in rearmament is significantly reflected in the European Investment Bank (EIB).

(Image:  Gerd Altmann /  Pixabay)
(Image: Gerd Altmann / Pixabay)

In response to the geopolitical landscape, the European Investment Bank (EIB) has invested four times more in security and defence last year than before. "Its investments in this area quadrupled to over four billion euros, making up nearly five per cent of the EU financing provided by the EIB group within the EU," stated the EU development bank in Brussels.

The funded projects are diverse: they range from military bases and repair facilities to research and development for radar systems, as well as sensors to protect Europe's seabed and underwater infrastructure. Projects related to cybersecurity and space capabilities are also included. Recently, the European Investment Bank (EIB) changed its lending rules to facilitate more investments in arms projects.

Europe’s security landscape is changing rapidly

European Defence Supply
(Source: VCG)

As defence budgets rise and EU programmes expand, civil technology providers are becoming vital contributors to Europe’s strategic autonomy. The event will act as a neutral platform for dialogue between technology suppliers, integrators, and decision-makers shaping the next generation of European defence capabilities and aims to open doors between civil industry and defence procurement, providing practical insights.

More than Half of Financing for Green Projects

The EIB, based in Luxembourg, claims to be the world's largest development bank and is responsible for long-term financing as an EU institution. The owners are the member states. The bank is intended to finance investments that contribute to the achievement of the EU's political objectives. Last year, the bank also invested a total of 100 billion euros, more than ever before, "to strengthen Europe's competitiveness, security, and strategic autonomy."

According to their reports, nearly 60 per cent of the total financing from the EIB group in 2025 is expected to be allocated to green projects. This includes the expansion of storage and renewable technologies to make heavy industry more climate-friendly. Additionally, the EIB is contributing over 540 million euros to new Bundeswehr infrastructure in Lithuania.

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