The European Investment Bank (EIB) has taken steps to begin financing Europe’s security and defence industry and infrastructure, the Luxembourg headquartered lender announced on Friday evening.
Until now, EU rules did not allow the EIB to finance production of military equipment. The EIB’s eligibility criteria have now been expanded “to ensure that excluded activities are as limited as possible in scope,” the bank said in a press release.
The move will allow the EIB to finance security and defence projects in areas like barracks and storage facilities, land and aerial vehicles, drones and helicopters, radars and satellites, advanced avionics, military mobility, cyber security, etc.
Earlier this month, the Luxembourg Times had reported that the EIB was going to review its defence spending eligibilities.
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EIB scouts how to invest more on EU defence short of weapons](https://www.luxtimes.lu/europeanunion/eib-scouts-how-to-invest-more-on-eu-defence-short-of-weapons/46936550.html)
The bank on Friday also announced its intention to double its investment for security and defence projects this year.
“The message of European leaders is clear: we must strengthen Europe’s security and defence capabilities. Today’s decisions show that the EIB is part of the solution,” said EIB Group President Nadia Calviño.
The shift comes amid rising geopolitical tensions and growing EU efforts to build strategic autonomy in areas such as defence, energy and critical technologies. It follows calls from EU leaders at a special European Council on 6 March for stronger financial backing of Europe’s defence industrial base.
Raw material and infrastructure
In parallel, the bank launched a new strategic initiative on critical raw materials (CRM), a vital input for clean energy technologies, semiconductors, defence and aerospace. The initiative includes a €2 billion financing package for 2025, a new task force, and a one-stop-shop to help project developers access funding and technical support.
The Luxembourg-based bank also approved a total of €8.9 billion in new financing across transport, energy, education, water and SME sectors. These include rail investments in Germany, Czechia and Spain, port upgrades in Estonia, school refurbishments in France and Portugal, and water projects in Kenya and Latvia.