Commissioner Kubilius and top EU financial stakeholders brainstorm solutions to finance European defence

On 25 February 2025, Commissioner for Defence and Space, Andrius Kubilius, chaired a High-Level Roundtable with the representatives of some of the most consequential financial stakeholders in the EU. Vice-President of the European Investment Bank (EIB), Robert de Groot, was also invited to participate to the Roundtable.

Commissioner Kubilius underlined that Europe should not take peace for granted. In the current geopolitical context, it was key to get prepared for the most extreme military contingencies. To reach that level of readiness, the Commissioner explained to his interlocutors that “there is a need for a strong commitment from the financial sector, which shall be an integral part of a new, revamped approach to European defence industrial readiness“”.

The High-Level Roundtable was gathered by the Commissioner to better understand the perspective of the financial sector on defence, the investment policies of financial stakeholders in defence, about how the EU regulatory framework may foster a more conductive investment environment, and about how the Commission may act to exercise the greatest leverage effect. 

Among some of the key messages, the financial sector highlighted the perceived reputational risks that should be changed including through awarenesses and change of mindset, the need to clarity some aspects of the EU sustainable framework while underlining that  it does not in itself hamper financing of the defence industry. In presenting their recipes for greater financing, participants argued in favour of creating an environment that can be more supportive of both the defence industry (i.e., inviting national governments to place joint, long-term orders) and the financial sector (i.e., advocating for greater transparency from the defence industry). Progressing on the Capital Markets Union and Saving and Investment Union was often quoted as a recipe to unlock the needed volume of investments. 

EIB Vice President de Groot expressed satisfaction and confidence over how the EIB Group’s support to the sector has been progressing “EIB has doubled its support for the defence industry in 2024 and will do so again in 2025, including €1B for SMEs in the defence supply chain”.  

The Commissioner welcomed the input of the financial stakeholders that would inform the upcoming White Paper on the Future of European Defence and the simplification package. He welcomed the willingness of the financial sector to work together with the Commission on improving the access to finance of the defence industry. 

This roundtable is only the latest step that the European Commission undertakes to bridge the gap between the financial and defence sectors. As the first-ever European Defence Industrial Strategy outlined, in order to meet the current security challenges a much greater volume of investment in defence is needed, and that may only happen with the contribution of financial markets. Accordingly, the Directorate-General for Defence Industry and Space, organised in November the EU Defence Industrial Investment Forum, which gathered more than 200 participants from private and public European banks, insurance and pension funds, asset managers, credit rating agencies, private equity and venture capital funds, and Member States’ representatives. The Forum addressed the question of the contribution of the defence sector to sustainability goals, emphasizing the importance of overcoming widespread exclusion policies in the financial sector and identifying innovative solutions to stimulate private sector engagement. This High-Level Roundtable elevated the discussion to a higher level, inching closer to a shared solution.