EU Investment Bank to Triple Defense Funding in 2024

Eastern and Central European countries, including those in proximity to Russia, are leading the push for Europe to bolster its military capabilities. Poland is NATO’s most spendy nation, devoting 4.7% of its GDP to defense — more than two times the alliance’s target of 2%. The country is aiming to boost this to 5 percent in the year following, which falls in line with Trump’s past insistence on greater defense spending from NATO members.

Boosting EU Defense Spending(text) For More Europe: Triple EU Defense Spending

Teresa Czerwińska, EIB Vice-President said: “Security and defense have become an important concern for many EU Member States today, in particular along NATO’s eastern border. She also announced the EIB is already prepared to triple its financing for projects in the defense sector across the union by 2024.

Although the EIB does not finance the manufacture of weapons or ammunition, Czerwińska stipulated that the EIB may finance projects funding dual-use technologies and the protection of critical infrastructure.

These include projects that can be used for both military and civilian purposes, including road and rail at the EU’s eastern border, infrastructure for military hospitals, and army barracks, which often exceed the budgets of national budgets.

Satellite Programs and Regional Projects
And Czerwińska added that some of the purchases of military equipment — such as drones and helicopters — might be eligible for co-financing. The bank is now examining more than 20 potential projects, some of them proposed by Poland. One of the projects most likely to receive EIB backing is a military base to be built in Lithuania.

Projects involving the cooperation of two or more countries are also more likely to be approved because the bank takes a pan-European approach, she said. From a regional perspective, projects that contribute to EU defense have better prospects for being funded.”

In 2024, the EIB earmarked €1 billion for the security and defense sector in Europe. The biggest amount—€300 million—went to Poland for its first national satellite program. Under this program, two Earth observation satellites would be launched, offering premium image qualities for civilian and military customers.