Reuters: EIB raises lending limit to €100 billion and triples defense financing
Kyiv • UNN
EU countries have agreed to increase the European Investment Bank's annual lending limit to €100 billion and triple financing for the defense industry. The bank also plans to invest €70 billion in technological innovation and renewable energy sources.
EU governments have agreed to increase the annual spending of the bloc's powerful lender, the European Investment Bank (EIB), to €100 billion this year and triple funding for the EU's defense industry, Reuters reports, writes UNN.
Details
Sources familiar with the plans said the decision was approved at a meeting of the EIB board in Luxembourg before the official signing, which is expected to be carried out by EU finance ministers later on Friday.
The new annual spending cap of €100 billion is more than €10 billion above the amount provided by the EIB last year and €5 billion above the €95 billion target set by the bank's president, Nadia Calviño, at the beginning of the year.
This will also allow it to more than triple funding for defense-related projects. According to sources, the amount will increase by €3.5 billion from €1 billion last year and will be significantly higher than the €2 billion it targeted in January.
The EIB is prohibited from investing directly in weapons or ammunition, but it can provide loans for so-called "dual-use" purposes, such as GPS systems or buildings and infrastructure for army bases.
It approved funding for one such base in Lithuania near the border with Belarus, where German troops are to be permanently stationed on foreign soil for the first time since World War II.
European countries are struggling to increase their defense spending amid pressure from US President Donald Trump, who has signaled plans to cut long-standing US security support for the continent.
This also comes just days before a NATO summit in The Hague, where alliance members are under pressure to meet demands to increase defense commitments.
Sources said the increase in EIB lending is also aimed at channeling money into other areas, including technological innovation and renewable energy.
EU officials said the bank, which is the world's largest multilateral lender, is also likely to announce plans to invest €70 billion in the development of European technology companies over the next three years.
The initiative, called Tech EU, aims to help Europe better compete with China and the US in the race for advanced technologies such as supercomputers, robotics, and artificial intelligence, as well as renewable energy.
The €70 billion in funding is to be divided into €20 billion for equity and quasi-equity, €40 billion for loans, and €10 billion for guarantees in 2025-2027, officials said.
They hope this money will mobilize an additional €250 billion in private investment funding and complement the European Commission's broader efforts to support startups and high-risk enterprises.