Reuters: EU authorizes EIB to spend €100 billion this year. Investments in defense to increase
EU governments have agreed to increase the annual spending of the European Investment Bank (EIB) to 100 billion euros ($115 billion) this year and triple funding for the EU's defense industry, Reuters reported, citing informed sources.
The decision was made at a meeting of the bank's board in Luxembourg. Final approval is expected in the near future at a meeting of EU finance ministers.
This new limit exceeds last year's figures by more than €10 billion and is €5 billion higher than the previous target announced by the bank's president, Nadia Calvino, at the beginning of the year.
Part of the additional funding will be directed to the defense industry. The cost of financing such projects will increase threefold – from 1 to 3.5 billion euros.
Although the EIB is not allowed to invest directly in weapons or ammunition, it can finance dual-use projects, such as infrastructure for military bases or GPS technology.
The decision comes amid rising defense spending in Europe, as EU countries seek to bolster their own security amid pressure from the United States. Donald Trump has repeatedly announced plans to cut American military support for Europe.
In addition to defense, EIB money will go to the development of innovative technologies and "green" energy.
In particular, the bank plans to invest 70 billion euros in the development of European technology companies over the next three years under the Tech EU program.
These 70 billion euros will be divided as follows:
- 20 billion euros – for investments in stocks and shares of companies;
- 40 billion euros for loans;
- 10 billion euros – for guarantees in 2025–2027.
The EIB hopes that this money will help attract about €250 billion more in private investment and complement the European Commission's initiatives to support startups and high-risk innovations.
- At the end of May, it was reported that the EU would invest 40 million euros ($45 million) for the first time in a dedicated European defense fund, in an effort to strengthen its military capabilities.
