(Finance) – The European Investment Bank (EIB) will update its policies for i loans to the security and defense sector. This includes an update to the definition of “dual-use” assets and infrastructure (which can be used for different civilian and military purposes), as well as support for small and medium-sized enterprises (SMEs) and startups, and a commitment to accelerate the use of funds to strengthen Europe’s security and defense capabilities.
Strengthening the EIB’s support to safeguard Europe’s peace and security is one of the top strategic priorities outlined by President Nadia Calvino and approved by the EU Finance Ministers at their February meeting and by the European Parliament, it said in a statement. It was therefore agreed that the concrete proposals will be discussed in April.
“We will increase and accelerate our support for the European security and defense industry, while safeguarding our financing capacity and the highest environmental, social and governance standards – said Calvino – As the financial arm of the EU, we must help ensure the peace and security of Europe. The action plan launched today will improve the financing conditions for European projects. We will work together with Member States and EU institutions to accelerate projects that ensure the well-being of our citizens.”
In the future, the EIB will waive the requirement for “dual-use” projects to derive more than 50% of expected revenues from civilian uses. This will align the EIB with public financial institutions that fairly limit their financing to equipment and infrastructure intended to meet military or police and also civilian defensive needs, such as reconnaissance, surveillance, spectrum protection and control, decontamination, research and development, equipment, military services mobility, border control and protection of other critical infrastructures and drones.