Germany, France Lead Call for EIB to Step Up Defense Financing

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Germany and France joined 12 other European Union countries in calling for the European Investment Bank to enhance its financing for defense as a means to boost the bloc’s security in light of Russian aggression.

The countries sent a letter dated March 17 to EIB President Nadia Calvino, European Council President Charles Michel and Belgian Prime Minister Alexander De Croo calling for a new financing strategy, according to a copy of the letter seen by Bloomberg. EU leaders will meet March 21-22 to discuss security, including the EIB’s role in defense readiness.

The EIB’s current policy forbids it from investing in weapons, ammunition, and military infrastructure, but the bank is allowed to finance so-called “dual-use items”, which can be used for both civilian and military purposes.

In the face of Russian aggression in Eastern Europe, a growing number of states would like this to change in order to improve the EU’s defence capacities.

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