EU countries call on European investment banks to promote national defense funds

Brussels, January 31 (Reuters) -When 19 EU countries, including France and Germany, have called on European investment banks to raise loans in the defense industry.

Before the EU leader on Monday’s future talks on the EU defense department, in the context of Russia’s invasion of Ukraine, EU leaders’ negotiations and US President Donald Trump requested NATO members to increase national defense expenditure.

EIB is owned by the EU government and is not allowed to provide funds for the production of ammunition, weapons or military equipment. In order to cancel the ban, most governments must agree, and some countries have doubts.

The bank can indeed use civilian and military applications (such as satellites, drones or radar systems) to provide dual use products.

Finland, Belgium, Croatia, Cyprus, the Republic of the Czech Republic, Denmark, Estonia, France, Germany, Greece, Italy, Lithuania, Luxess, the Netherlands, Romania, Slovakia, Spanish, Sweden, Sweden to the President of the European Council President The head of the banks of the President of the European Council and the President of the European Council and the EIB should review the list of banks who exclude the event and consider issuing national defense bonds.

The leader said in the letter: “However, the feasibility of this possibility should be negotiated with the financial market and rating agencies, and proper attention should be paid to … It may be negotiated with the possible impact of the current EIB bond financing costs.” Reuters.

Some European governments, especially Austria, Ireland, or Malta, are worried that funding for national defense may endanger the highest credit rating of EIB, not to solve problems. They say that this is not a lack of funds, but a long -term contract.

EIB is also a key participant to fund Europe’s ambitious transition from net zero carbon and more digital economy. Some countries are worried that adding ammunition and weapons to their investment list may scare investors.

The bank increased the financing of security projects to 1 billion euros (US $ 1.04 billion) last year and plans to increase to 2 billion euros by 2025. The European Commission estimates that in the next 10 years, the European Commission of the Ministry of National Defense will need 500 billion euros.

EIB’s phone was coordinated by Finland. Finland and Russia had a 1,340 kilometer border, and joined NATO in 2023.

Finnish Prime Minister Petteri Orpo said in a statement: “For Finland, it is important that (EIB) funds are directly used in ammunition production, which is currently impossible.”

EIB is the world’s largest multilateral financial institution and loan, with an asset -liability statement of more than 500 billion euros.

($ 1 = 0.9643 Euros) (Jan Strupczewski report; editor of Philip Blenkinsop and Philippa Fletcher)