This renewed agreement will enable both institutions to identify and meet the financial needs of collaborative defence projects involving EU Member States and their defence industries. It covers key areas such as capability development, research, development, and innovation (RDI), technology, and infrastructure in the defence and security sectors.
A significant aspect of the new MoU is the reinforcement of the Cooperative Financing Mechanism (CFM), which supports pan-European defence initiatives. This mechanism will provide comprehensive support, including facilitation, procurement, and funding, for key collaborative defence efforts. The agreement also emphasises greater knowledge-sharing between the EIB, the European Investment Fund (EIF), and the EDA. This collaboration aims to enhance market assessments and boost industrial capacities across Member States.
Under this updated framework, the EDA will offer industrial defence advice to the EIB Group, while the EIB will provide its financial market expertise to support the EDA’s objectives. The partnership reflects Europe’s increasing commitment to strengthening its collective defence and security capabilities, responding to growing calls for greater investment in this critical sector.
Speaking on the renewed partnership, EIB Vice-President Robert de Groot said, “The updated Memorandum of Understanding is a key element of our Defence Action Plan, aimed at strengthening Europe’s defence industry through collaborative initiatives. By partnering with the EDA, we are leveraging the unique expertise of both institutions in investing in peace and security across Europe. The EIB Group is committed to scaling up this industry in line with our objectives.”
EDA Chief Executive Jiří Šedivý highlighted the rise in European defence spending over the last eight years and the importance of collaboration in meeting collective goals. “The updated MoU provides the right tools for securing access to financing for Europe’s defence industry. This is critical as EU Member States continue to increase their defence spending and move closer to their collective targets.”
The EIB Group, which includes the European Investment Fund (EIF), plays a vital role in providing financial support for Europe’s defence sector. EIF Chief Executive Marjut Falkstedt echoed this sentiment, stating, “Our collaboration with the EDA equips us to meet the dynamic challenges of the defence sector. We are committed to driving impactful initiatives that enhance European security.”
