EIB to Amplify Defence Funding Amid Rising Security Concerns

The European Investment Bank plans to significantly increase its defence funding by 2025 in response to heightened security concerns in the EU, particularly from perceived Russian threats. This move follows a recent policy shift allowing more flexibility in financing defence projects, excluding weapons and ammunition.

The European Investment Bank is poised to double or even triple its defence funding by 2025, as stated by its vice president. This development is part of the EU's strategy to enhance security spending by 800 billion euros over the next four years.

Amidst concerns spurred by former U.S. President Donald Trump's renegotiation of commitments to European security, EU nations are now compelled to bolster their military capabilities. The EIB, an EU government banking entity, is responding by expanding funding eligibility for defence initiatives, albeit excluding direct financing for weapons and ammunition.

Vice President Teresa Czerwinska highlighted in Warsaw that the bank has invested 1 billion euros into security-related ventures in 2024. Currently, 14 additional projects are under consideration, including infrastructure for military accommodation in Lithuania, emphasizing the strategic importance for EU's eastern border nations.

(With inputs from agencies.)