EIB Boosts Europe’s Security & Defence with €4.5B Financing

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Today, the European Investment Bank (EIB) Board of Directors endorsed a revised definition for dual-use goods and infrastructure eligible for EIB Group funding. Additionally, they committed to facilitating financing for small and medium-sized enterprises (SMEs) in the security and defence sector by introducing dedicated intermediated financing.

Moreover, the Board allocated €4.5 billion in fresh financing for various projects, emphasizing climate action, technological innovation, and agriculture as strategic priorities.

“We are stepping up our support for Europe’s security and defence industry, strengthening investment to keep Europe and its citizens safe, while safeguarding the EIB Group’s financing capacity,” EIB President Nadia Calviño said.

The EIB will waive a previous requirement that dual-use projects eligible for financing in the area of security and defence derive more than 50% of their expected revenues from civilian use. Projects and infrastructure used by the military or police that also serve civilian needs will now be eligible for EIB Group financing. There will no longer be a minimum threshold for expected revenues from civilian applications or share of civilian users.

The EIB Group will also update its rules for security and defence SME financing. This will open dedicated credit lines managed by banks in EU Member States and other intermediaries for dual-use projects by smaller companies and innovative startups. EU companies whose activity is partly in defence will be eligible for financing using EIB-backed intermediated credit lines. No further changes were made to the EIB Group’s eligibility, excluded activities and excluded sectors list.

The EIB Group has created a dedicated Security and Defence Office, providing a one-stop shop for security and defence investment, operational since 1 May 2024. It offers streamlined financial support and expert assistance aimed at strengthening Europe’s security and defence capabilities.

The Board today also approved €4.5 billion of new financing for renewable energy, agriculture, sustainable transport and business investment.

The financing will have an impact in creating skilled jobs, increasing renewable energy generation and enhancing sustainable transport infrastructure to improve lives and opportunities and to contribute to a greener and more resilient future for all,” said EIB President Nadia Calviño.

The Board approved €1 billion of new business financing. Sustainability-focused corporate research and innovation across Europe will be supported by a dedicated pan-European venture debt initiative and new cooperation with local financing partners to scale up business financing in Ukraine, Georgia, Moldova, Armenia and Azerbaijan, while access to finance to enable companies to expand and create jobs will be enhanced by new business financing programmes with banking partners in Spain and the Czech Republic. The first financing programme for agribusiness and agricultural cooperatives in Senegal, under the EIB’s pan-African agriculture financing initiative, and support for agricultural and rural development investment in Spain were also approved.

The EIB backed €1.1 billion of investment in sustainable transport, including co-financing construction of a new 149 kilometre suburban railway network with 58 stations in Bangalore, the third largest city in India, that will reduce congestion, climate emissions and pollution. Financing for new and upgraded regional passenger trains in southwestern France and increased support for an extension of the Stockholm metro were also approved.

New clean-energy investment totalling €1.2 billion was agreed by the Board. New equity financing for investment in utility scale renewables in Asia, Latin America and Europe was approved, alongside backing small-scale wind and solar schemes in France and Germany and upgrading electricity distribution in Greece and Italy.

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