19 EU Countries Urge EIB to Boost Defence Funding

Nineteen EU member states, including major players like France and Germany, have urged the European Investment Bank (EIB) to increase funding for the defense sector in response to the ongoing security threats posed by Russia's war against Ukraine. The countries sent a letter advocating for changes to the EIB's financing rules to allow direct support for defense projects, including the production of ammunition and weapons, which is currently prohibited. They propose that the EIB review its excluded activities list and consider issuing defense bonds to attract private financing. The call comes ahead of EU leaders' discussions on defense funding at an upcoming summit. While the EIB has made strides in funding dual-use projects, concerns remain about maintaining its strong credit rating if financing for traditional military applications expands. Some EU nations, particularly neutral states, express caution regarding the implications of such funding on the EIB's broader financial commitments and objectives.