EIB Group and the European Defence Agency deepen partnership to strengthen European security and defence capabilities

• EIB and EDA commit to jointly identify security and defence projects across the EU for financing
• Both sides also aim to enhance knowledge sharing and exchange of expertise

Brussels. 03 October 2024. The European Investment Bank (EIB) Group and the European Defence Agency (EDA) have today reinforced their partnership to boost financing for Europe’s security and defence capabilities.

Building on the Memorandum of Understanding (MoU) signed in 2018, the updated agreement was signed on 3 October 2024 during an informal meeting of National Armaments Directors at EDA in Brussels. The enhanced MoU will enable both organisations to identify financing needs for collaborative defence projects involving EU Member States and their defence industries to support capability developments, research, development and innovation (RDI), technology, and infrastructure in the area of security and defence in the EU. It will also better address the financing needs of collaborative defence projects in areas such as RDI, involving EU Member States and their defence industries.

A key feature of the revised agreement is the reinforcement of mechanisms such as the Cooperative Financing Mechanism (CFM), designed to support pan-European defence initiatives with a comprehensive package that includes facilitation, procurement, and funding. The MoU also promotes greater knowledge-sharing between the EIB, the European Investment Fund (EIF), and EDA, allowing for more robust assessments of market demand and industrial capacities across Member States. Under the new framework, EDA will provide industrial defence advice to the EIB Group, while the EIB will contribute its financial market expertise to support EDA’s objectives.

This strengthened collaboration comes at a critical time, as Europe faces increased calls for greater investment in security and defence. The partnership between the EIB Group and EDA aims to provide increased investments to strengthen the EU collective defence capabilities.

“The updated Memorandum of Understanding is an important element of our Defence Action Plan, which includes strengthening Europe’s industry through collaborative initiatives,” said EIB Vice-President Robert de Groot. “By partnering with EDA, we leverage the unique expertise of each institution in investing in peace and security across Europe. The EIB Group is  implementing its objectives outlined in the Defence Action Plan, and is committed to helping scale up this industry.”

EDA Chief Executive Jiří Šedivý said: “European defence spending has been increasing for eight consecutive years and EU Member States are on course to hit collective spending targets. Yet we still need to pull together our resources to finance joint efforts and boost defence capabilities. The updated Memorandum of Understanding with the EIB will give us the right tools to help Member States meet their goals, namely in securing access to financing for Europe’s defence industry.”

The EIB Group includes the EIF.

“We are committed to continuously adapting our approach to meet the dynamic challenges of the defence sector,” said EIF Chief Executive Marjut Falkstedt. “Our collaboration with EDA will ensure that the EIF is equipped with the expertise necessary to drive impactful initiatives that reinforce our shared goal of enhancing European security.”