The European Defence Agency and the European Investment Bank have signed an updated memorandum of understanding to enhance support for the European Union’s security and defense initiatives.
The revised agreement, finalized Thursday during a meeting of national armaments directors in Brussels, builds on the initial MOU established in 2018. The partnership seeks to support the objectives of the Common Security and Defence Policy, part of the EU’s cooperative approach to improving international security and crisis management through civilian and military assets.
Under the updated framework, EIB and EDA will collaborate to identify the financing needs of the member states’ collaborative defense projects in research, development, technology, and infrastructure.
According to EDA, the enhanced MOU also facilitates improved knowledge sharing between the two organizations and the European Investment Fund, consolidating industrial defense and financial market expertise to support the institutions’ respective goals.
Another crucial aspect of the revised agreement is the implementation of the Cooperative Financing Mechanism. A voluntary program, CFM aims to ease the launch of cooperative projects from research to the acquisition phase by providing access to funding and reducing bureaucracy.
EDA Chief Executive Jiri Sedivy said the partnership is about giving the right tools to help the EU build its collective strength.
“European defense spending has been increasing for eight consecutive years and EU member states are on course to hit collective spending targets, yet we still need to pull together our resources to finance joint efforts and boost defence capabilities,” he said.