The European Union is preparing to significantly increase the resources available to the European Investment Bank (EIB). According to sources close to the matter, the institution's annual lending ceiling will be raised to €100bn from this year. This decision, approved by the EIB's board of directors in Luxembourg, is expected to be officially confirmed on Friday by European finance ministers.

This new ceiling exceeds the volume of loans granted in 2024 by over €10bn and the initial target set for the year by €5bn. This is a significant turning point for the bank, headed by Nadia Calviño.

European defense in the spotlight

With this increase, the EIB will be able to triple its investments in defense-related projects, from €1bn in 2024 to €3.5bn. This is well above January's forecasts.

Although the EIB cannot directly finance weapons or ammunition, it can support projects with dual civilian and military use. This includes GPS systems, infrastructure for military bases, and communication technologies.

Amongst the projects already approved is the financing of a military base in Lithuania, near the Belarusian border. This will be home to German troops on a permanent basis, a first since World War II.

This strategic shift comes as Europe seeks to strengthen its defense sovereignty. US President Donald Trump has repeatedly threatened to reduce US involvement in Europe, undermining the continent's security.

The next NATO summit, scheduled to take place in The Hague, is expected to focus on military spending. Alliance members are being urged to take on greater responsibility for security.

"Tech EU": a super plan for European tech

But the EIB's ambition does not stop at defense. A large portion of the additional funds will be devoted to technological innovation and renewable energy.

In particular, the EIB plans to launch "Tech EU," a €70bn program over three years (2025-2027). This aims to support European technology companies and catch up with China and the US in strategic areas such as AI, high-performance computing, robotics, and clean energy.

A lever to mobilize private investment

Out of the €70bn allocated to "Tech EU," €20bn will be earmarked for equity investments or quasi-equity, €40bn for loans, and €10bn for guarantees. Brussels has an ambitious goal: to attract up to €250bn in private investment.

The stakes are high: strengthening the European startup ecosystem, boosting innovation, and reducing the continent's technological dependence.