EU Investment Bank Boosts Lending to Strengthen Defence and Tech Industries

The European Investment Bank (EIB) has announced a significant increase in its annual lending capacity, raising it to a record 100 billion euros for this year. This move is aimed at supporting the EU's defence industry, energy infrastructure, and technological advancements. With global pressures mounting, particularly from the United States, European countries are investing heavily in fortifying their military capabilities.

The decision to boost lending comes ahead of the NATO summit in The Hague, where member nations are urged to enhance their defence spending. The EIB, owned by EU governments, intends to more than triple its funding for defence projects, despite restrictions on direct investments in weapons. Instead, focus will be on 'dual-use' purposes, such as developing infrastructure and technology applicable to military and civilian sectors.

A standout initiative, TechEU, will allocate 70 billion euros towards fostering innovation in technology and renewable energy over the next three years. This programme is designed to elevate Europe's standing against global tech leaders China and the United States by investing in cutting-edge areas like supercomputing and artificial intelligence. The EIB expects to mobilize an additional 250 billion euros from private investors to drive further innovation and economic growth.

(With inputs from agencies.)