The European Investment Fund has launched an initiative to strengthen investments in the continent’s defense and security capabilities.
In a memorandum of understanding with the NATO Innovation Fund, the two organizations aim to encourage private capital funds to allocate more of their investments towards the region’s defense and security industry.
The MOU includes plans for joint activities aimed at increasing awareness of the potential of investing in defense and security. Among the public awareness initiatives are reaching out to private capital funds and guiding companies in their investment plans.
The two organizations also aim to launch new financial products that will help European defense companies get the investment they need.
Andrea Traversone, managing partner at the NATO Innovation Fund, said that the collaboration with the EIF, the European Investment Bank Group and the European Commission comes at a time when there is a significant need to unlock innovations that will strengthen the region’s defense, resilience and security.
EIF CEO Marjut Falkstedt said that with the EIF and NIF leading dialogues and knowledge sharing, the partnership expects an improved investment landscape for the defense industry.
The collaboration between the financial institutions comes after a private equity firm official called for increased capital allocation for the space sector due to fear of the region lagging behind its peers’ capabilities.