The European Investment Bank is to invest €2 billion in the European defence industry in 2025, the bank’s president, Nadia Calviño, announced on Tuesday.

“Last year, the European Investment Bank reached a record €1 billion in investments in the area of security and defence,’’ Mr Calviño said.

He said this when he arrived at a meeting of European Union finance ministers in Brussels.

“I can tell you that our expectations are that we will double that amount for 2025, reaching €2 billion in investments to support Europe’s security and defence industry,’’ Mr Calviño said.

The EU had struggled to ramp up arms production in recent years, despite Russia’s war against Ukraine leading to a push to improve defence capabilities and military assistance for Kiev, depleting domestic stocks.

European countries, many of which are also members of the Western defence alliance NATO, are under additional pressure after U.S. President Donald Trump repeatedly called on NATO allies to drastically increase their defence spending.

The concern is that if the European defence industry is not expanded quickly enough, the necessary weapons would, in large parts, be purchased outside Europe, which would ultimately harm the European economy.

(dpa/NAN)