Finland-led group of EU leaders calls on European Investment Bank to increase funding for defence industry

Finland-led group of EU leaders calls on European Investment Bank to increase funding for defence industry

Finland and a key group of EU leaders have sent a letter calling on the European Investment Bank (EIB) to take on a stronger role in supporting the EU's defence. In the countries' view, EIB financing could be used much more extensively for defence industry projects. Drawn up at Finland's initiative, the joint letter was endorsed by the heads of state of France and Germany, among others.

The letter was signed by 14 EU Member States, or more than half of the countries in the Union. Prime Minister Petteri Orpo signed the letter on behalf of Finland. The other signatories are Bulgaria, the Czech Republic, Denmark, Estonia, France, Germany, Italy, Latvia, Lithuania, the Netherlands, Poland, Romania and Sweden.

Prime Minister Orpo believes the EIB could play a significantly stronger role in increasing the financing base of the European defence industry.

"Even under the current rules, the EIB would be able to finance more projects involving dual-use items. Supporting the EU's defence industry is important for European competitiveness and also helps to strengthen the internal market," says Prime Minister Orpo.

The letter from the EU leaders emphasises the urgent need for additional investments to strengthen the EU's defence and security capabilities as Russia continues its war of aggression in Ukraine. This is especially important now, as the EU is currently setting its strategic priorities for the coming years.

The letter notes that while the EIB is currently providing financing for dual-use projects, these projects make up only a small share of the EIB's activities. Given the current situation, it would be important to explore possibilities that would enable the EIB to invest in defence-related activities more broadly. The letter states that the role of the EIB should be explored in line with its tasks as defined in the Treaties, while at the same time safeguarding the EIB's financing basis.

The signatories of the letter believe that strengthening the role of the EIB would also attract more private investments in security and defence. As such, barriers to market access for the private sector should be addressed urgently.

Inquiries: Tuomas Tikkanen, Special Adviser (EU Affairs), tel. +358 40 523 5768, Jari Luoto, Director General, EU Affairs Department, tel. +358 40 523 5949 and Marko Ruonala, Project Manager (Communications), tel. +358 50 522 8233, Prime Minister's Office.

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