The European Defence Agency (EDA) and the European Investment Bank (EIB) Group have assessed a series of projects for EIB financing since the start of their closer cooperation in October 2024. Europe’s largest public lender is drawing on EDA’s expertise to guide financing for projects with defence applications.
Signed on 3 October 2024, the
partnership gives EDA a formal role in advising the EIB Group on defence-related matters. For the EIB, whose traditional focus has been on railways, energy grids and other large-scale infrastructure, this fills a critical gap.
Projects of varying scope have been assessed, ranging from company-level investments to support for Member States’ defence needs. On 19 September 2025, EIB Group and EDA experts reviewed methods for assessing defence technologies under the bank’s eligibility criteria. The aim is to enable the EIB to provide better clarity towards prospective lenders on what activities are eligible for EIB financing.
Such exchanges underline the bank’s commitment to boosting EU defence and EDA’s role as its key partner.
Funding defence assets
The EIB Group has undertaken several initiatives over the years to ensure increased financing for the European defence sector. With the Memorandum of Understanding, EDA’s involvement and assessments ensure that project proposals are appraised not only on financial grounds, but also against the EU’s defence capabilities priorities.
EIB’s hallmark instruments, namely long-term loans at low interest rates, are particularly suited for defence assets with a long lifespan. Collaborative projects such as satellites or drones could see the EIB cover up to half of costs, with repayments spread over 25 years, easing pressure on national budgets.
The EIB has made security and defence one of the eight core strategic priorities, answering to the call from EU Member States to actively support the bolstering of Europe’s defence industrial capacities. The partnership with EDA is expected to help shape EU defence investments for years to come, supporting both national security and long-term strategic projects.
EDA’s wider role
EDA supports its 27 Member States in improving their defence capabilities through European cooperation. Acting as an enabler and facilitator for Ministries of Defence willing to engage in collaborative capability projects, the Agency has become the hub for European defence cooperation, with expertise and networks covering the full spectrum of defence capabilities. Member States use EDA as an intergovernmental expert platform where their collaborative projects are supported, facilitated and implemented.