• Military Menu                       

• Introduction
• Systems
• Facilities
• Agencies
• Industry
• Operations
• Countries
• Hot Documents
• News
• Reports
• Policy
• Budget
• Congress
• Links

• WMD
• Intelligence
• Homeland Security
• Space

The President calls for stepping up Europe's investment in defense

President of the Republic of Lithuania

Januray 31, 2025

President Gitanas Nausėda, together with the leaders of Belgium, Croatia, Cyprus, the Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Italy, Luxembourg, Latvia, the Netherlands, Romania, Slovakia, Spain, and Sweden addressed António Costa, the President of the European Council, Nadia Calviño, the President of the European Investment Bank (EIB), and Donald Tusk, the Prime Minister of Poland, which currently holds the Presidency of the EU, calling for the strengthening of the European security and defense industry.

The letter emphasizes the need for decisive action to strengthen Europe's common defense preparedness, capabilities, and defense industry base in the face of persistent security threats, including Russia's war of aggression against Ukraine. It also highlights the importance of bolstering the capacity to counter hybrid threats, ensuring the protection of critical infrastructure, which presents specific challenges that require immediate solutions.

European leaders welcomed the actions already launched by the EIB, including changes to the financial requirements for dual-use projects, the introduction of a new credit line for SMEs operating in the defense sector, and the positioning of the EIB as a 'one-stop-shop' financial institution for European security and defense investments. It was also noted that the EIB's decision to increase the Bank's gearing ratio in 2024 will enable increased investments in critical areas such as security and defense.

Despite this progress, the President, along with other leaders, calls for stronger action and proposes three key measures. First, reviewing the list of financed activities to expand it in the defense sector and ensure that EIB financing aligns with the EU's new policy priorities. They also propose adjusting the EIB's lending policy to accommodate the growing demand for defense and security financing, while still supporting other strategic priorities. Finally, the idea of earmarked debt issuance to finance defense-related projects can be considered, thus ensuring transparency for investors and maintaining the most efficient and cost-effective financing mechanism.

The letter emphasizes that improved access to EIB financing and speeding up the implementation of defense investments in the EU would not only enhance the capabilities of the defense industry but also attract greater participation from private investors. Lithuania's stance is clear and resolute: there is an urgent need to strengthen Europe's defense technological and industrial base, and the EIB needs to take an even more proactive role in this effort.

The President's Communication Group