The European Union has announced a substantial increase in funding for the defense industry, raising the annual lending limit of the European Investment Bank to €100 billion this year. This is over €10 billion more compared to last year and €5 billion above the bank’s previous target mark.
This is reported by Business • Media
Increase in Investments in Defense and Infrastructure
As part of the updated EIB budget, financial support for the defense sector will sharply rise from €1 billion in the previous period to €3.5 billion this year. Although the bank is not allowed to directly finance the purchase of weapons, it invests in dual-use projects, including the development of GPS technologies and the modernization of military infrastructure.
The EIB is already involved in projects such as the construction of a military base in Lithuania near the border with Belarus, intended for the deployment of German troops. The decision to expand support comes amid rising threats in Europe and statements from U.S. President Trump regarding a potential reduction of American military presence on the continent.
New Funds for Technologies and Energy
In addition to the defense sector, additional resources from the European Investment Bank will be directed towards the development of high-tech sectors and investments in renewable energy. This move aims not only to enhance defense capabilities but also to strengthen the competitiveness of European innovative companies.
Alongside the increase in funding, the labor market in Europe’s defense sector is showing notable revitalization. According to the Indeed portal, since the beginning of Russia’s full-scale invasion of Ukraine, the number of job vacancies in defense sector companies has increased by 40%. The largest number of new jobs has been created in France – 43%, followed by Germany and the United Kingdom with rates of 17% respectively.