EU Elevates EIB Lending to Record Heights with Defence Focus

In a decisive move, EU governments have approved a significant increase in the annual lending capacity of the European Investment Bank (EIB), pushing it to a record 100 billion euros this year. This financial boost aims to extensively support the EU's defence sector, tripling previous funding levels. Sources familiar with the developments indicated that the EIB board reached this decision in Luxembourg, with a formal endorsement by EU finance ministers anticipated soon.

This increase represents more than a 10 billion euro escalation from last year's lending and surpasses the initial target set by EIB President Nadia Calvino. Part of the newly allocated funds will markedly increase defence project financing, with allocations jumping from 1 billion to 3.5 billion euros. Although direct investments in weaponry are still off-limits, funding for dual-use projects such as infrastructure for military bases is permissible.

The increased lending will also enhance technological innovation and renewable energy investments. Building on its strategic plan, the EIB is set to introduce a 70 billion euro programme, Tech EU, targeting European technology firms. This initiative seeks to strengthen Europe's competitive edge in emerging fields, particularly against formidable global players like China and the United States.

(With inputs from agencies.)