At a summit on Thursday in Brussels, 27 EU heads of state and government called on the European Investment Bank (EIB), the EU’s financial arm, to provide loans to defense companies to support Europe’s rearmament against Russia, AFP reported.

The EIB “is invited to adapt its lending policy to the defense industry,” the European heads of state and government wrote in a joint statement.

Based in Luxembourg, the bank, whose shareholders are the member states of the European Union, provides loans and guarantees to enterprises to finance the priority policies of Europe.

Since its creation in 1958, it has invested more than one trillion euros in climate and environmental projects, social and territorial cohesion, innovation and support for SMEs.

Its mandate allows it to invest in the production of dual-use goods, both civilian and military, such as drones, but not yet in weapons in the strict sense.

Thanks to the prestigious AAA financial rating, a guarantee of reliability that allows borrowing at favorable prices, the EIB plays a key role in financing the energy transition.

France, in particular, advocated expanding the EIB’s powers to the defense industry. This week, along with thirteen other countries, including Germany and Italy, it prepared a corresponding letter.

Russia’s invasion of Ukraine on February 24, 2022 “caused an increase in the need for investment in the security and defense sector,” they said.

In 2022, the EIB signed financial contracts for 65 billion euros. It also plays an important role in promoting international development, with its global partnership arm EIB World, which operates in 160 countries, lending €10.8 billion last year.