Europe strengthens its strategic autonomy; EIB triples defense financing

• (Interview with Ioannis Tsakiris, EIB Vice-President for Security and Defense)

In June, the EIB Group's operational plan for the current year was revised upwards, with total estimated financing set to reach a record level of 100 billion euros, with amounts earmarked for security and defense estimated at 3.5% of the total, Ioannis Tsakiris, EIB Vice-President for Security and Defense, told us in an interview. The official told us: "With 2.6 billion euros already signed at Group level since the beginning of the year and a confirmed portfolio of over 30 security and defense projects under approval, we are on track to achieve the new increased target, which will allow us to more than triple the financing from 2024.” According to the cited source, EIB financing has reached over 15 EU member states, and the list will be expanded by the end of 2025.

Reporter: What is the role of the EIB in implementing the SAFE instrument?

Ioannis Tsakiris: EIBG is not directly involved in the implementation of the Security Action for Europe (SAFE), but we are working hand in hand with the European Commission, the European Defence Agency, member states and NATO, to ensure our work supports European priorities and security. We are working to ensure complementarity between the SAFE instrument and our financing, and through the opening of the InvestEU Advisory mandate for security and defence we will be able to focus even more resources on the technologies that will shape the European security and autonomy in the future. As you know, SAFE is a European Commission instrument essentially consisting on long term loans to Member States for priority areas which are detailed in the SAFE Regulation.

Reporter: What conditions must defence industry companies meet to benefit from EIB loans necessary for joint procurement of weapons and military equipment, as well as for the creation of military equipment production capacities? - Are there any tie-breaking criteria for financing defence projects and what are they?

Ioannis Tsakiris: To benefit from EIB Group financing for security and defence, companies and relevant projects must be domiciled in the European Union. In line with the mandate given by European leaders, in March 2025 the Boards of Directors of the EIB and the EIF decided to broaden the range of eligible activities that we can finance by going beyond dual-use projects (with both civil and military components) to support pure defence. As stated in the updated EIB Group Exclusions and Restricted Sectors List, military and police equipment and infrastructure are eligible to our financial support while weapons and ammunitions are excluded. Defence Ministries are best placed for that, while we focus on deploying our resources where we add value: by providing financing to innovators in the areas of security and defence in the European Union, from drones to space, by investing in critical infrastructure, from military barracks to navy ports, by strengthening Europe's defence supply chain, with tailored products for SMEs, and by pioneering a defence equity ecosystem.

Reporter: How can green lending be applied in defence?

Ioannis Tsakiris: As the EU Climate Bank, the EIB ensures that all its investments, including in the security and defence sectors are aligned with the Paris Agreement and our Climate Bank Roadmap. Our Environmental and Social Standards set a demanding framework, but we also recognise the intrinsic link between security, resilience, and sustainability: Europe cannot advance on climate or social goals without the ability to safeguard its people and values. In practice, there are defence-related operations that directly support climate objectives for example, renewable energy systems for military bases, energy-efficient infrastructure, or technologies that reduce emissions and environmental impact. The European Commission's Defence Readiness Omnibus adopted in June 2025 has clarified that certain defence activities can be considered sustainable under specific conditions, giving the sector a clearer basis to identify which projects may qualify as "green.” Importantly, the EIB's Climate Bank Roadmap 2.0 also foresees that in exceptional cases, the Bank may support projects serving an overriding public interest, such as humanitarian assistance, the protection of food and water security, or essential security measures. This ensures that while we maintain our climate and environmental commitments, we can also respond flexibly to Europe's broader strategic and societal needs.

Reporter: The EIB's financing of part of the A1 Sibiu-Pitesti with EUR 500 million, a contract to be signed in October, is part of the funds granted for dual-use, civilian and military projects?

Ioannis Tsakiris: The A1 Sibiu-Piteşti motorway, which the EIB is financing with euro500 million, is primarily a cohesion investment, part of the EU's core Trans-European Transport Network (TEN-T) that enhances connectivity and economic development across Romania. At the same time, this type of infrastructure also contributes to Europe's dual-use objectives, meaning that while it primarily serves civilian transport, it can also support military mobility when needed for example, through the design of bridges or road segments that can carry heavy loads or facilitate rapid deployment. This is not new for the EIB: supporting resilient, high-quality transport infrastructure has always been part of our core mission, with around euro50 billion invested annually in European infrastructure. Across the EU, the EIB also contributes to military mobility operations in line with EU and Member State priorities. However, we do not disclose the specific share of the security and defence component in individual operations.

Reporter: If so, could the EIB provide financing in the same way for A7 and A8 to Moldova, in the context of the current conflict in Ukraine?

Ioannis Tsakiris: The EIB operates on a demand-driven basis, meaning that we finance projects according to the priorities and requests of our counterparts - in this case, the Romanian authorities and the European Union. The A7 motorway, like the A1, is primarily a Cohesion project, aiming to improve connectivity, regional development and economic resilience across Romania and its links to Moldova. While such infrastructure can also support security and defence objectives by enhancing cross-border mobility, its core purpose remains civilian. As for the A8, this project is not currently in the EIB's lending pipeline, but we stand ready to assess any request that aligns with our mandate and EU policy priorities, particularly where it strengthens Europe's connectivity, resilience, and cohesion.

Reporter: In June 2025, the EIB announced that it had increased the amount allocated for defence projects by EUR 3 billion. How many requests have there been since June so far for loans granted from this supplement?

Ioannis Tsakiris: Indeed, in June 2025, the EIB Group operational plan for 2025 was revised upwards with a total financing expected to reach a record euro100 billion with financing amounts for security and defence expected to reach 3.5% of the total. With euro2.6 billion already signed at Group level since the beginning of the year and a confirmed pipeline of more than 30 security and defence projects for approval, we are well under way to meet the new increased target, that will allow us to more than triple the 2024 financing. Our financing reached more than 15 EU Member States, with more to be included to the list before end 2025.

Reporter: Depending on the number of requests, the EIB could increase this amount and by how much?

Ioannis Tsakiris: Security and defence is now one a transveral Public Policy Goals of the EIB Group, along with Climate Action and environmental sustainability, and Cohesion. This means that the financing volumes will be integrated in the annual operational plan process, which is approved by our Board of Directors on an annual basis. We can already anticipate that we will be proposing to our Board a further increase of resources assigned to this policy priority in 2026.

Reporter: Can the EIB provide the necessary technical assistance in this area?

Ioannis Tsakiris: Yes, the EIB is well positioned to provide financial and technical assistance also in this area. An excellent example is the advisory assignment we had with the Lithuanian government to ensure the public-private-partnership agreements related to the new military base meet market standards. Only last week we have signed a similar agreement with the Latvian government.

The scope EIB's Advisory Services can vary, from helping clients shape their strategies and build the skills needed to manage projects independently, to conducting market and sector studies to better understand the specific needs of industries and regions, and guiding projects through the necessary steps to secure financing, often mobilising complex or bespoke financial solutions when required.

Importantly, the advice provided by the EIB is independent and can be offered either in conjunction with the Bank's financial products or entirely separately. This flexibility ensures that clients receive the support they need, whether or not they are seeking financing from the EIB.

We welcome the opening of the InvestEU Advisory mandate for security and defence. This will allow us to focus even more resources on the technologies that will shape our autonomy in the future - quantum, AI, biotech, robotics, and advanced manufacturing. A further top-up of available dedicated funding for technical assistance for infrastructure projects by the Commission will however be much needed to support the early stages of project development and get new projects off the ground, in particular on the Eastern flank.

Reporter: What advice do you have for companies in the defence industry in Romania that want to access EIB funds in this area?

Ioannis Tsakiris: We encourage companies in Romania's defence and security sectors to reach out directly to us with their project ideas. The EIB has a local representation in Bucharest that can provide guidance and help identify the most suitable financing options. While the EIB usually supports large-scale investments, small and medium-sized enterprises (SMEs) can access EIB financing through our network of partner banks in Romania, via multi-beneficiary intermediated loans. A full list of financial intermediaries with EIB facilities in Romania is available here. Our approach is demand-driven. We work closely with project promoters, governments and financial institutions to determine the best financing route - whether through EIB instruments, the European Commission's SAFE programme, or other mechanisms. Within the EU, we support projects that strengthen Europe's long-term defence capabilities and resilience, in coordination with the European Defence Agency.

Reporter: Thank You!