After tough pressure, the EIB revised its lending policy in the spring to allow for more investment in dual-use products—that is, products that have both civilian and military uses.
Yet, compared to member states, the EIB alone is not well-positioned to determine which project is the highest priority for finance needs.
“If we get demand for financing of projects, how do we as a bank know what is a priority from the perspective of the European military, the collective 27 generals?” Robert De Groot, EIB’s vice-president for defence, told Euractiv.
The EDA “can give us advice on the content of security and defence projects we will finance,” he explained.
The EIB is already in touch with the European Commission and, through it, with the EU diplomatic arm and the military staff. However, it has not yet directly engaged with member states represented by the EDA on this specific point.
The EIB-EDA collaboration will focus on “capability enhancement, research and development because we need innovation in the defence sector, technology and security infrastructure,” de Groot also said.
For example, de Groot said the cooperation could help determine where to invest in increasing the military mobility of troops and equipment on the continent, which includes investing in infrastructure to make it fit for military use.
“We have to strengthen bridges; we need different transport corridors so they are ready for military use, which we have neglected for a couple of decades. These projects come to the bank. How do we, as bankers, know what European generals or even NATO sees as the first priority?”
Finland’s highways, for instance, support the landing of F-16 fighter jets, as demonstrated earlier this month.
For the EDA’s Chief Executive Jiří Šedivy, “European defence spending has been increasing for eight consecutive years (…) yet we still need to pull together our resources to finance joint efforts and boost defence capabilities,” he said in a statement.
According to EDA data, EU states are spending record-high amounts on defence, with €240 billion spent in 2022. Improving funding methods for defence has been a top priority for all EU institutions after Russia’s attack on Ukraine highlighted defence investment gaps on the European continent.
[Edited by Martina Monti/Alice Taylor]
Source link : https://www.euractiv.com/section/global-europe/news/eu-defence-agency-to-advise-european-investment-bank-on-investment-priorities/
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Publish date : 2024-10-03 07:26:44
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