Fourteen EU member states have written a letter urging the European Investment Bank (EIB) to increase its defense spending in order to fulfill the commitment of delivering one million artillery shells to Ukraine. The deadline for this delivery has passed this month.
The letter suggests that a revised EIB policy could have a positive impact by making it more acceptable for pension funds and banks to invest in security and defense. The signatories of the letter include Finland, Bulgaria, the Czech Republic, Denmark, Estonia, France, Germany, Latvia, Lithuania, the Netherlands, Poland, Romania, and Sweden.
Although the letter does not explicitly mention ammunition, French EU Commissioner Thierry Breton previously proposed using EIB loans for funding grenades. Currently, weapons and ammunition are excluded activities for the EIB, along with tobacco, gambling, and projects with political or religious purposes.
The letter calls for exploring ways for the EIB to invest in defense-related activities beyond existing dual-use projects. The decision to modify the list of excluded activities lies with the EIB’s shareholders, which are the EU member states.
EU leaders will discuss the role of the EIB in financing defense at a summit in Brussels this week. Some EIB officials have expressed opposition to expanding the bank’s mandate to include weapons and ammunition.
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EIB vice president Thomas Östros and other officials have questioned the need for the EIB to invest in ammunition, suggesting that funds could be allocated to other initiatives like energy efficiency or cybersecurity. They believe that involving a public lender like the EIB would only complicate matters.
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