A joint letter by 19 EU member states urged the European Investment Bank (EIB) to boost loans for the defense industry, the Finnish government said Friday.
In the letter, the heads of state highlighted the urgent need to mobilize additional defense sector investments to strengthen the EU's defense capability and comprehensive security.
Referring to Europe's evolving security challenges, in particular the ongoing war in Ukraine, which will turn three next month, the letter urged the EIB to expand its financing mechanisms for defense projects.
"The issue is especially topical, as the EU leaders will be discussing European defense in their informal retreat in Belgium on 3 February, as well as at the European Councils in the first half of the year," the statement said, looking ahead to a Monday meeting.
The letter suggests that the list of activities excluded from EIB financing should be reevaluated to reflect the EU's current policy priorities.
"This would mean that, going forward, the EIB would be able to provide financing for traditional defense industry projects. Secondly, the proportion of financing allocated to defense should be increased. A third measure proposed in the letter is earmarked debt issuance by the EIB for the defense projects. At the moment, the EIB issues bonds earmarked for clean transition projects, for example," it said.
The 19 member state signatories were Germany, France, Belgium, the Netherlands, Italy, Greece, Croatia, Finland, the Greek Cypriot Administration, Latvia, Lithuania, Luxembourg, Romania, Spain, Sweden, Slovakia, Denmark, Czechia, and Estonia.
