European nations seek to expand EIB’s role in defence sector financing

The leaders of 19 EU member states have signed a letter calling on the European Investment Bank (EIB) to increase funding for the defence industry.

The initiative was led by Finnish Prime Minister Petteri Orpo, and the statement was published on the Finnish government’s website, Caliber.Az reports referring to international news outlets.

"Strengthening EU defence is an existential issue for Finland and for Europe as a whole. This means that we must use all the means at our disposal. It is important for Finland that the funding can be used directly for the production of ammunition, which is currently impossible," Orpo stated in a government release.

He further emphasised that the EIB should play a larger role in expanding the financial support available to the European defence industry.

The letter was signed by the heads of state and government of Belgium, Germany, Greece, Denmark, Spain, Italy, Cyprus, Latvia, Lithuania, Luxembourg, the Netherlands, Romania, Slovakia, Finland, France, Croatia, the Czech Republic, Sweden, and Estonia.

In the document, the European leaders highlight the urgent need for additional financial resources to bolster the EU’s defence capabilities and overall security. They propose revising the list of activities currently excluded from EIB funding, increasing the bank’s financial allocations for defence, and introducing designated bonds specifically for defence-related projects.

By Tamilla Hasanova