The European Investment Bank will invest 95 billion euros in 2025, but only 2 billion euros for defense!
The European Investment Bank (EIB) is targeting an investment of €95 billion by 2025, supporting initiatives ranging from clean technology and artificial intelligence to affordable and sustainable housing and climate action, while allocating just €2 billion to Europe's security and defense industry.
"I want to be very clear: we are not a defense ministry. We are the European investment bank and we are fulfilling our mandate with a very proactive approach," EIB Group President Nadia Calviño told reporters during the presentation of the EIB's 2024 results.
In March 2024, the European Commission asked the EIB to review its lending policy, which currently excludes financing for purely military projects, to help Europe increase its defense production.
However, when asked by journalists, Calviño declined to say whether the Bank intends to support purely military projects, instead emphasizing the EIB's role in this sector and its commitment to maintaining its financing capacity.
“This is the only sector where the EIB has taken an extremely proactive approach by constantly testing the market and identifying where the Bank can make a difference,” she added. Last year, the EIB doubled its support for eligible security and defence projects to €1 billion and will reach €2 billion in 2025.
Calviño argued that the EIB Group has already expanded its eligible investments in dual-use projects, now including border protection, military mobility, space and cybersecurity.
"We are currently evaluating 14 projects, which we expect to be approved in the coming months. The European Investment Fund is also engaging with various investment funds dedicated to security and defense," she noted.
The EIB is the world's largest multilateral financial institution by assets and holds a strong AAA credit rating. However, some EU countries, particularly neutral ones, have expressed concerns that defense financing could jeopardize the Bank's creditworthiness.
During a European Parliament event in December, EU Defence Commissioner Andrius Kubilius criticised the EIB’s limited investment in defence compared to green finance. “Out of almost €1 trillion [for green finance], you only have €6 billion for defence [available under the European Strategic Security Initiative]. This is wrong because, in my opinion, investment in defence is investment in peace,” said the former Lithuanian prime minister.
To stay competitive against global players like the US and China, the EU needs to invest 700-800 billion euros each year over the next decade to modernise its economy, strengthen security and advance the green and digital transitions, according to Mario Draghi's report on competitiveness.
Public and private capital will be needed to channel these investments. The European Commission has already called on the Luxembourg-based EIB to maximize its capacity to attract private investment and bridge Europe's investment gap in key sectors, including defense and decarbonization.
In 2024, the EIB mobilised €100 billion for EU energy security projects, including networks, interconnectors, renewables and net-zero industries. It also invested €38 billion in promoting social and territorial cohesion and €51 billion in supporting the green transition, climate action and environmental sustainability.
“Climate and competitiveness are a winning combination for Europe, and it is a no-brainer that we must invest more in energy security to support key sectors driving the green transition and our most promising innovators,” Calviño highlighted as key priorities for 2025. Next year, the EIB plans to increase support for innovators and start-ups, as well as for farmers, food resilience and mitigation of increasing droughts. “Every euro invested in prevention and adaptation saves 5 to 7 euros in reconstruction and repairs,” said Calviño.
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