The letter emphasises the need for decisive action to strengthen Europe’s common defence preparedness, capabilities, and defence industry base in the face of persistent security threats, including Russia’s war of aggression against Ukraine. It also highlights the importance of bolstering the capacity to counter hybrid threats, ensuring the protection of critical infrastructure, which presents specific challenges that require immediate solutions, said the president’s press service.
European leaders welcomed the actions already launched by the EIB, including changes to the financial requirements for dual-use projects, the introduction of a new credit line for SMEs operating in the defence sector, and the positioning of the EIB as a „one-stop-shop“ financial institution for European security and defence investments. It was also noted that the EIB’s decision to increase the Bank’s gearing ratio in 2024 will enable increased investments in critical areas such as security and defence.
Despite this progress, the president, along with other leaders, calls for stronger action and proposes three key measures. First, reviewing the list of financed activities to expand it in the defence sector and ensure that EIB financing aligns with the EU’s new policy priorities. They also propose adjusting the EIB’s lending policy to accommodate the growing demand for defence and security financing, while still supporting other strategic priorities. Finally, the idea of earmarked debt issuance to finance defence-related projects can be considered, thus ensuring transparency for investors and maintaining the most efficient and cost-effective financing mechanism.
The letter emphasises that improved access to EIB financing and speeding up the implementation of defence investments in the EU would not only enhance the capabilities of the defence industry but also attract greater participation from private investors. Lithuania’s stance is clear and resolute: there is an urgent need to strengthen Europe’s defence technological and industrial base, and the EIB needs to take an even more proactive role in this effort.