The European Investment Bank (EIB) is set to significantly broaden its defense investment mandate, a move that aligns with the European Union’s growing focus on strengthening its defense capabilities amid rising security threats. The proposal, announced by EIB President Nadia Calviño, will be reviewed by the bank’s board of directors on March 21, 2025.
This expansion is designed to boost funding for critical military infrastructure, advanced defense technologies, and cybersecurity initiatives across the EU. The initiative is part of the EU’s response to increasing security challenges, particularly following Russia’s invasion of Ukraine, which has underscored the need for greater defense preparedness and self-reliance within the region.
As part of the new proposal, the EIB plans to integrate its current €8 billion defense program into a permanent EU public policy goal. This would allow the bank to provide increased financing for projects such as military mobility, border protection, radar systems, satellites, and defense research. The move aims to ensure that Europe remains well-prepared for future security challenges while reducing dependence on external military support.
Calviño emphasized that while the EIB will focus on strengthening Europe’s military capabilities, it will continue to exclude the financing of weapons and ammunition. Instead, the focus will be on broader areas such as cybersecurity, anti-jamming technologies, and the development of critical infrastructure to support the EU’s defense needs.
The proposal coincides with the European Commission’s ReArm Europe plan, which includes a new €150 billion fund to provide EU-backed loans to member states to support defense spending. Commission President Ursula von der Leyen has stressed that expanding the EIB’s mandate is essential for financing Europe’s long-term defense goals and ensuring that the EU is better equipped to face global security challenges.
EU leaders are expected to discuss the EIB’s expanded mandate at a special summit on March 20-21, 2025. The expansion is part of a broader push for increased military cooperation among EU member states, as the bloc seeks to build a more secure and self-reliant defense infrastructure.
This decision marks a significant shift in how the EU approaches defense funding and military cooperation, reinforcing the bloc’s commitment to its collective security and future defense needs. The EIB’s expanded role will be a key factor in Europe’s ongoing efforts to enhance its defense capabilities and maintain stability in an increasingly uncertain global environment.