Finland requires EIP money for weapons – the EU’s powerful countries are in favor of

Finnish and Prime Minister Petteri Orpo (Kok) has been lobbying for a longer period of time to extend the EIP financial authorization to fund more defense industry.

Finland has hoped that the bank could finance, in addition to the existing dual-use two-use products, that is, in addition to both military and civilian products, weapon and projectile production.

Under the leadership of Finland, the majority of EU countries are now demanding that the bank in its recent letter to re-examine the basis for financing dual-use products.

19 The letter signed by the country wants to be as limited as possible to the list of non -funding activities prohibited by EIP.

In addition to Finland, the letter has been signed by Germany, France, Italy, the Nordic countries, the Baltic countries, Belgium, Spain, the Netherlands, Greece, Croatia, Cyprus, Luxembourg, Romania and Slovakia.

EIP is owned by EU Member States. They guide the use of the bank’s funds politically.

A fraction of the defense

Last year, EIP financed the defense industry by billion euros, compared with EUR 89 billion. 60 % of the funds were directed to finance the green transition projects.

According to Orpo, strengthening the EU defense is an existential issue for Finland and Europe as a whole. Therefore, the European Investment Bank should play a significantly greater role when increasing the financial base of the European defense industry.

“Accelerating private funding is a key route. It is important for Finland that funding can be used directly for ammunition production, which is not possible at present, ”Orpo says.

CEO of EIP Nadia Calvino At a press conference on Thursday, he did not want to comment on the expansion of the bank’s authority, he only stated that the bank had already increased funding to the defense sector.

Based on the background discussions, EIP feels that changing the authorities to enabling weapons financing could endanger its AAA credit rating.

19 In its letter, the country also hopes that EIP will reduce special bonds targeted at defense.

All changes to the EIP loan policy require a decision to make a simple majority of EU Finance Ministers.