Press releases
European banks reaffirm their commitment to financing European defence
The French Banking Federation (FBF) welcomes the publication by the European Banking Federation (EBF) of a position paper dedicated to the financing of the European defence sector.
This document marks an important step in the commitment of European banking institutions to establishing a more coherent, predictable and sustainable framework for defence financing in Europe. It reflects the banking sector’s ambition to continue supporting, efficiently and transparently, the development of the European defence industrial and technological base (EDTIB). The FBF fully supports this initiative and has actively contributed to it, submitting concrete proposals to the EBF, based on feedback from its members and on the French experience of cooperation between the banking sector, public authorities and the defence industry.
This coordinated effort hasve enabled European banking stakeholders to reach a clear consensus around the following key points and orientations :
- Strategic importance: the banking sector fully supports the objective of European strategic autonomy in defence and positions itself as a key partner in financing a more resilient and secure Union.
- Improving the situation of defence SMEs: diversifying financing sources for innovative SMEs through the Capital Markets Union and ensuring predictable public budgets with faster procurement processes, in order to avoid cash flow pressures.
- Prohibited weapons: banks exclude activities related to weapons prohibited under international law, as ratified by their respective Member State ofreference, and welcome the clarifications provided by the European Commission in its Omnibus proposal.
- Strengthening the role of the European Investment Bank (EIB): further adapting its mandate its mandate to enable more direct support for defence-related projects, in line with European objectives.
- Revision of internal policies: banks are adapting their internal frameworks to better support financing for the defence sector.
- Regulatory framework: the European framework, including ESG requirements, does not impose specific barriers to financing defence companies, and could be refined to facilitate investment through simplified procedures, clearer public procurement signals, and support for public-private partnerships and guarantees.
The FBF remains committed to strengthening the legislative and regulatory framework in order to facilitate the mobilisation of the necessary financing and to reinforce the European Union’s strategic autonomy in this crucial sector. It will continue working with European partners and institutions to ensure that the European financial ecosystem is fully mobilised in support of the Union’s strategic priorities.
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