The Board of Directors of the European Investment Bank (EIB) approved, on Wednesday 8 May, an updated definition of dual-use goods and infrastructure eligible for EIB Group financing and agreed to facilitate the financing of small and medium-sized enterprises (SMEs) in the security and defence industry by opening up dedicated intermediated financing.
At its meeting on 8 May, the Board of Directors officially adopted the Action Plan for the security and defence industry unveiled by EIB President Nadia Calviño at the meeting of EU finance ministers on 12 April (see EUROPE 13390/8).
With regard to dual-use goods and infrastructure, the EIB will waive a previous requirement that dual-use projects eligible for financing in the area of security and defence derive more than 50% of their expected revenues from civilian use. Projects and infrastructure used by the military or police that also meet civilian needs will now be eligible for EIB Group financing. There will no longer be a minimum threshold for expected revenues from civil applications or the share of civilian users.
In addition, the updated rules for financing SMEs in the field of security and defence will make it possible to open dedicated credit lines managed by EU Member State banks and other intermediaries for dual-use projects by small businesses and innovative start-ups. EU companies whose activities fall partly within the defence sector will be able to benefit from financing by means of EIB-backed intermediated credit lines.
The EIB Group has also set up a Security and Defence Office, which has been operational since 1 May 2024. This one-stop shop for security and defence investments “offers streamlined financial support and expert assistance aimed at strengthening Europe’s security and defence capabilities”, according to the EIB press release.
According to the Bank, these changes are expected to speed up investment and improve access to EIB Group financing for the European security and defence sector. Six billion euros of funding are available under the Strategic European Security Initiative (SESI) and the Defence Equity Facility (see EUROPE 13327/11). (Original version in French by Camille-Cerise Gessant)