EIB to fund EU military and defense ambitions

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The European Investment Bank (EIB) should start funding defense research, European Union leaders will say on Thursday according to the latest version of a joint statement, a move that is part of a wider plan to boost the bloc’s defense spending.

Plans to step up the EU military and defense role have long been circulating, but have been given new impetus by US President-elect Donald Trump who questioned whether Washington should protect allies not spending enough on their own defense.

“The EIB should initiate appropriate steps with a view to supporting investments in defense research and development activities,” said the draft leaders’ statement, seen by reporters.

The EIB, owned by EU governments, has so far been prevented from investing in defense and has focused instead on financing infrastructure projects in the EU.

The draft joint conclusions of the summit, still subject to changes, also urge the European Commission to create a European Defense Fund in the first six months of next year.

The fund should initially have a financial capability of 90 million euros until 2020, which could be boosted to 500 million euros a year from 2021, according to a Commission proposal unveiled earlier in November.