EU Leaders Discuss Defense Spending, EIB Mandates Expansion for Military Investments

On February 3, 2023, an informal EU defense summit took place in Brussels. The meeting included EU leaders, NATO Secretary General Jens Stoltenberg, and UK Prime Minister Keir Starmer. The EU Commission proposed a €500 billion investment in European defense over the next ten years, with a focus on air defense and securing eastern borders. While the summit discussed increasing defense spending, no agreement was reached on financing. The EU Commission President Ursula von der Leyen announced plans to utilize the flexibility of the Stability Pact to enable individual defense spending. Additionally, 19 EU countries, including Germany, France, and Italy, have called for an expansion of the European Investment Bank (EIB) mandate to include direct military investments. The EIB currently focuses on regional development, competitiveness, network expansion, and climate protection financing. The proposal aims to establish specific defense bonds to facilitate military investments.