The EU will increase the European Investment Bank’s annual lending limit to €100 billion this year. This new limit exceeds last year’s bank lending by more than €10B and is €5B higher than the EIB’s previous target. Under this budget, funding for the defense sector will rise from €1B to €3.5B. Although the bank is not permitted to finance the purchase of weapons, it can allocate funds for dual-use projects, such as GPS technology or military base infrastructure.
One of the EIB’s projects has already established a base in Lithuania, near the border with Belarus, where German troops are set to be stationed. This decision was made against the backdrop of increasing threats in Europe and US President Trump’s statements regarding a potential reduction in the US military presence on the continent.
In addition to defense, the EIB will also direct the new funds toward the development of high technology and renewable energy.
In contrast, the number of vacancies in companies within the European defense industry has risen by 40% since the onset of the full-scale Russian invasion of Ukraine.