EIB Pledges Record Funding for Europe's Security Infrastructure, More Support for Ukraine

The European Investment Bank (EIB) Board of Governors annual general meeting (AGM) took place in Luxembourg on Friday 16 June 2023.

On this occasion, the EIB Group announced that it will increase financing for the security industry to the highest level to-date, affirming its commitment to support Europe’s defence, strategic autonomy and its climate agenda.

European Union finance ministers welcomed the EIB's role in reducing the impact of economic shockwaves triggered by Russia's full-scale invasion of Ukraine. The meeting followed a decision by the EIB's Board of Directors, on Thursday 15 June 2023, to raise security investments to €8 billion, up from €6 billion, until 2027.

The EIB Board of Directors approved an increase in the size of the dedicated Strategic European Security Initiative (SESI) plan for security investment adopted last year. While the priorities identified remain valid, according to the EIB, additional emphasis will be given to military mobility, space, green security and critical infrastructure.

Separately, the Board of Directors approved €1.6 billion in new lending, including backing Europe's largest solar panel gigafactory in Italy, upgrading district heating in cities across France, scaling up waste management and recycling in Romania, the construction of two new windfarms in the Baltics and improving telecom connections in Africa.

"We are supercharging our support for Europe's industrial competitiveness, priority investment and cutting-edge dual-use technologies, deploying the full range of our resources in the most flexible way possible," said EIB President Werner Hoyer. "My message to our Governors today was that extraordinary times require extraordinary measures. The credibility of the European Union, domestically and internationally, is at stake."

President Hoyer briefed ministers on the EIB Group's activities over the past year, including €72.5 billion in new financing signed in 2022, as well as operations in Ukraine.

"EU leaders gave us a clear mandate to 'step up' our support for Ukraine's most urgent needs, and that's what we are doing with launch of the EU for Ukraine initiative and Fund," Werner Hoyer said.

The EIB signed more than €1.5 billion in new financing for SESI-aligned projects in 2022 and assured that it remains fully committed to supporting European security. A key priority under SESI remain the new dual-use technologies that Europe will need to remain secure in the long-term. The EIB noted that this week's decisions do not change what is eligible for financing or modify the definition of the EIB's excluded activities or sectors.

The AGM was chaired by Elisabeth Svantesson, Sweden's Minister for Finance. Governors approved the EIB's accounts and nominated a new Board of Directors.

"The EIB is instrumental in channelling targeted support for innovation, competitiveness and a swift, just transition to net zero," Elisabeth Svantesson said, handing over the rotating presidency of the Board of Governors to Belgium. "It is and will remain a critical tool of EU policy delivery."

"The EIB has led the way in marshalling much needed investment in response to a series of crises - from the climate emergency to the pandemic and to the fallout of this terrible war," added Vincent Van Peteghem, Belgium's Deputy Prime Minister and Minister of Finance. "It is an honour to chair the Board of Governors of the EU Bank, our bank, as we deliver on our common priorities, both inside the Union and globally."