The European Investment Bank (EIB), the EU's financial institution, expects to invest €2 billion in the European security and defence industry this year.
EIB President Nadia Calviño announced on Tuesday that the institution would double its defence investments this year.
The EIB funds various projects, including initiatives aimed at "greening" the EU economy. Last year, it invested a record €1 billion in defence. The bank has broadened the criteria for these credits to encourage more financing applications. With the Russian invasion of Ukraine, there has been a renewed focus on bolstering European arms production.
In addition, newly inaugurated US President Donald Trump is pressuring NATO partners to increase government spending on defence. The alliance stipulates that members must spend at least 2% of their GDP on defence but Trump wants to raise this requirement to 5%.
There are concerns that if Europe doesn’t catch up with competitors, the purchase of weapons outside the EU will be harmful to the European economy.
