"The EIB Board of Directors today approved an updated definition of eligible dual-use assets and infrastructure for EIB Group financing and agreed to facilitate financing for small and medium-sized enterprises in the security and defence sector through the opening of a dedicated intermediated financing facility," the institution said in a statement.

Following the green light from the European Union (EU) finance ministers and "intensive consultations" with shareholders, financial markets and stakeholders, the financial institution decided that, from now on, the EIB will waive "the previous requirement that dual-use projects eligible for financing in the security and defence domain derive more than 50% of their expected revenues from a civil use".

This means that "projects and infrastructure used by the armed forces or police that also serve civilian needs will now be eligible for EIB Group financing", with no longer a minimum threshold for civilian applications, the institution explained, speaking of a "safeguarding of peace and security in Europe".

At the same time, there is an update of the financing rules for small and medium-sized enterprises in the security and defence sector, with new dedicated credit lines and a specific desk to provide assistance.

Quoted in the information note, the president of the EU bank, Nadia Calviño, welcomed the change, which aims to "strengthen investment to keep Europe and its citizens safe, while preserving the EIB Group's financing capacity".

In total, six billion euros of financing is available under the European Strategic Security Initiative, an amount that reinforces the EIB's support for the European security and defence sector within the existing framework.

At a time of intense geopolitical tensions, the EU has been prioritising investment in European defence and security, advocating for increased production and purchases within the community bloc.

To this end, countries will start to rely on financing from the EU bank, a direction defended by the institution's new president, Nadia Calviño, who took office earlier this year.

The EIB is the EU's long-term lending institution, owned by its 27 member states to finance investments in line with the community's political objectives.

Under the European Strategic Security Initiative, which was reinforced after the war in Ukraine caused by the Russian invasion, the EIB has earmarked eight billion euros of financing for the period between 2022 and 2027.

In addition, the European Investment Fund launched a 175 million euro mechanism in January this year to support small and medium-sized enterprises and start-ups in this area, such as cybersecurity.

Also today, the EIB Board of Directors approved 4.5 billion euros in new financing for renewable energy, agriculture, sustainable transport and business investment.

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