Investment BankEU development bank invests billions in defense equipment
SDA
30.1.2025 - 15:20
The EU wants to ramp up defence production against the backdrop of the war in Ukraine. (archive picture)
Keystone
Last year, the European Investment Bank (EIB) invested more money in defense equipment than ever before. Investments in security and defense were doubled to one billion euros in 2024, the EU development bank announced in Brussels.
Keystone-SDA
30.01.2025, 15:20
30.01.2025, 15:21
SDA
For 2025, a further doubling of annual investments to two billion euros is expected, said President Nadia Calviño. According to the bank, no projects in the defence sector were finalized in Germany last year.
Against the backdrop of the Russian war of aggression against Ukraine, the EU is trying to ramp up arms production. To this end, previous EIB guidelines for cash flows into industry were changed last year. For example, there are more opportunities for investments in so-called dual-use goods. These are products that can be used for both civil and military purposes, such as helicopters or drones. If the development bank is also to invest in pure armaments projects, the 27 member states would have to agree on a change to the mandate.
60 percent of all investments in climate protection
At 51 billion euros, the EU development bank also invested more money in climate protection and environmental sustainability in 2024 than ever before. The sum corresponds to around 60 percent of total investments in 2024, the bank also announced. A record sum of 31 billion euros was invested in the EU's energy security. In total, the European Investment Bank Group signed 89 billion euros in new financing last year (2023: 88 billion euros).
The EIB, based in Luxembourg, is by its own account the world's largest development bank and, as an EU institution, is responsible for long-term financing. The owners are the member states. In principle, the bank is intended to finance investments that contribute to achieving the EU's political objectives.
In Germany, the bank invested 9.6 billion euros last year (2023: 8.6 billion). The focus was on promoting the competitiveness and innovative strength of important industries such as automotive suppliers, fiber optics and pharmaceuticals, according to the bank.