[Trending News] Bei will propose to soften restrictions to be able to invest more in security and defense

Brussels (EFE). The European Investment Bank (BEI) will propose to soften the restrictions that currently reduce its ability to invest in security and defense projects, as well as eliminate the limit of 8,000 million it currently has to grant financing in this area, although it will still not be able to invest in weapons and ammunition.

This is stated in a letter to which EFE has had access and that the president of the entity, the Spanish Nadia Calviñohas sent to the Member States the same day that the president of the European Commission, Ursula von der Leyenhas revealed its plan to multiply military spending in the block and two days before the Special Summit of EU leaders who will analyze this issue.

The letter is the entity's response to a previous letter in which about twenty EU leaders, including the president of the Government, Pedro SánchezThey asked the BEI to adjust their mandate to increase their contribution to what is one of the main priorities of the block.

At present, the BEI can only finance dual use projects and technologies – that is, both civil and military – and can dedicate a maximum 8,000 million financing until 2027 to security and defense through the European Strategic Safety Strategic Initiative (SESI, in English).

“We want to propose at the March meeting to the Board of Directors of the BEI a new adjustment of the group's choice criteria to ensure that the excluded activities are defined in a more precise and as limited way as possible in focus so that they are aligned with the new political priorities of the EU in a way that saves the operations and the financial position of the BEI,” says the letter.

In addition, the BEI will propose a review of its operational framework and replace the semi strategy with a “transverse” initiative to contribute to the security and defense objectives of the block and that has “a financial allocation and ambitious capital” that will be determined annually.

“This will allow the Bei group to increase the volume of financing available to respond to the needs, while their financial position and effective financing of other strategic priorities of the Union are safeguarded, such as the green pact, critical raw materials, clean industry, cohesion and innovation,” according to the letter.

Although it would maintain the prohibition of financing the purchase or development of weapons and ammunition, the bank's investments in the security and defense sector would cease to be collected in a differentiated strategy – with a concrete and limited allocation – and would be integrated into the General Work Program and in the strategic priorities of the entity.

Once the modifications have been approved, the BEI may mainly finance infrastructure and technologies expenses without having to demonstrate dual use, such as barracks and hospitals and research centers of the military field, but also research and development projects, border management, protection of critical infrastructure and activities of cybersecurity agencies and police bodies.

The BEI has sent this letter to the capitals precisely the day Von der Leyen has revealed a plan of five pillars to multiply the military expenditure of the block and that, among other things, includes a new instrument of 150,000 million that the EU will capture with debt emissions and that will transfer to the member states in the form of credits.

The Community Executive will also propose the activation of the national exhaust clauses that provide the budgetary rules to give governments flexibility to increase defense spending without these investments being accounted for, at least in part, to calculate the public deficit.

The Brussels Plan will also give margin to countries to use part of the funds of the policy of cohesion to projects related to the military industry, measures to mobilize private capital towards this type of investments and, precisely, take advantage of BEI's resources to increase investments in the field of security and defense.