Financing Europe’s Strategic Autonomy: The EIB Group’s Defence and Security Transformation

By Grégoire Chauvière Le Drian, Representative of the European Investment Bank (EIB) in France

As defence industry leaders and investors gather at Eurosatory 2026, one question increasingly shapes the debate: how can Europe finance the capabilities required to ensure its security and strategic autonomy in a rapidly changing world?

The answer extends well beyond defence budgets alone which is currently discussed in the French Parliament. Building a more resilient Europe requires sustained investment in innovation, industrial capacity, cybersecurity, space technologies, critical infrastructure and resilient supply chains. In recent years, the European Investment Bank (EIB) Group has emerged as a key actor in this effort, adapting its policies and financial instruments at unprecedented speed to support Europe’s security and defence ambitions.

The geopolitical shocks of recent years — from Russia’s war against Ukraine to growing cyber threats, hybrid attacks and intensifying global competition — have demonstrated that security has become an essential component of Europe’s prosperity and resilience. In response, the EIB Group has undertaken a remarkable transformation. With a strong support of its shareholders - the 27 EU Member States - it has progressively broadened its eligibility criteria for security and defence-related investments while remaining fully aligned with its public policy mandate.

This transformation has been driven by strong leadership and a clear strategic vision. Since taking office in 2024, EIB President Nadia Calviño has placed security and defence among the Bank’s strategic priorities, arguing that Europe’s prosperity, competitiveness and security are increasingly interconnected. Under her leadership, the EIB established a dedicated Security and Defence Office, streamlined internal procedures and significantly expanded the scope of eligible activities. Vice-President Robert de Groot, who oversees security and defence activities, has been instrumental in translating this vision into concrete financing operations and partnerships across Europe. French Vice-President Ambroise Fayolle has likewise contributed to advancing projects that strengthen Europe’s technological and industrial base, particularly in sectors where innovation and sovereignty go hand in hand.

The speed of this evolution is remarkable. Within only a few years, the EIB has moved from a cautious approach towards defence-related investments to a proactive role in supporting new technologies, critical infrastructure and strategic industrial capabilities. This shift reflects a broader recognition that economic security, technological leadership and defence preparedness are increasingly inseparable.

The EIB Group now deploys a comprehensive range of financial instruments to support these objectives. Long-term loans finance large-scale industrial and infrastructure projects. Through the European Investment Fund (EIF) supporting funds in Europe, the Group supports innovative SMEs and start-ups developing critical technologies. Venture debt, guarantees and equity instruments help mobilise private capital and strengthen Europe’s innovation ecosystem, particularly in areas where financing gaps have historically limited growth.

Several recent operations illustrate this strategic evolution. In France, the EIB granted a €450 million loan to Thales to support research and development in next-generation radar systems, avionics and advanced defence-related technologies. This landmark financing strengthens Europe’s technological leadership in critical sectors while demonstrating the EIB Group’s growing commitment to supporting strategic industrial champions.

Beyond France, the EIB has financed Poland’s satellite programme, supporting sovereign space capabilities and secure communications infrastructure. Across Europe, the Bank has expanded support for projects involving cybersecurity, artificial intelligence, advanced sensors, resilient digital networks and space technologies. These investments reflect a broader understanding of defence, where technological superiority, data security and industrial resilience have become decisive strategic assets.

Importantly, the EIB Group’s contribution extends beyond the volume of financing provided. Its unique strength lies in its ability to crowd in private investment. By reducing risk and providing long-term financing on attractive terms, the EIB Group helps unlock capital for projects that are strategically essential but often perceived as too risky by private investors alone. In doing so, it acts as a catalyst for the development of a stronger European defence technological and industrial base.

Together with member states and the European Commission, the EIB Group is currently expanding its successful Defence Equity Facility with a target size of €1 billion. Acting as an anchor investor, the EIF is planning to mobilise capital to Venture Capital defence focused funds and back European companies developing innovative solutions for defence technologies.

The EIB Group’s catalytic role directly contributes to European sovereignty. In the twenty-first century, sovereignty is no longer defined solely by military capabilities. It also encompasses technological leadership, industrial competitiveness, energy resilience, cybersecurity, secure communications and autonomous access to space. By financing these strategic capabilities, the EIB Group is helping Europe build the foundations of its long-term autonomy, security and prosperity.

As discussions at Eurosatory highlight the scale of the challenges facing Europe, they also underscore a simple reality: sovereignty requires investment. Through its rapid adaptation, innovative financial tools and growing engagement with the security and defence sector, the EIB Group has become once again much more than a traditional public bank. It is increasingly acting as a financial arm of European strategic autonomy, transforming political ambition into concrete industrial and technological capabilities.

Just as the EIB Group plays a pivotal role in financing Europe’s green transition and low-carbon economy, it is now also helping to finance the conditions of Europe’s security and strategic autonomy. In an era of geopolitical uncertainty, this evolution demonstrates not only the Bank’s capacity to adapt, but also Europe’s determination to equip itself with the financial instruments necessary to safeguard its future resilience, competitiveness and security.