The European Investment Bank (EIB) is aiming to expand its involvement in the areas of security and defence.
The board of directors of the Luxembourg-based EU lender approved plans on Wednesday that offer more opportunities for investment in dual-use goods, according to a statement.
These are products that can be used for both civil and military purposes, such as helicopters or drones. In the future, small and medium-sized companies in the defence sector should be able to obtain loans from the EIB more easily.
EU finance ministers had recently spoken out in favour of a greater role for the bank in security and defence and signalled their approval of the plans presented by EIB President Nadia Calviño, which have now been formally confirmed.
Until now, at least 50% of dual-use projects financed by the EIB had to be for civilian use. This percentage requirement has now been dropped.
According to the EIB, civilian use is still required for all loans. However, the extent to which this must be the case will no longer be stipulated.
The 27 EU member states would have to agree on a change to the institution's mandate if they wanted the bank to invest in pure defence projects. The European Commission, the EU's executive arm, has spoken out in favour of this.