How to Access the New €17.7 Billion EIB Defence-Financing Window: A Practical Guide for Dual-Use SMEs in Europe

Russia’s war against Ukraine in 2022 fundamentally shifted European priorities, prompting a strategic emphasis on security and defence investment. In response, the European Investment Bank (EIB) Group – as the EU’s long-term financing arm – moved to support Europe’s defence industrial base in unprecedented ways [1] [2] . The EIB’s Board of Directors rapidly expanded the Strategic European Security Initiative (SESI) – initially a €6 billion envelope – to €8 billion for 2022–2027 to finance defence-related projects, and the EIB has already signed over €2 billion in SESI-backed financing since the war began [1] . In parallel, the European Investment Fund (EIF) launched a new €175 million Defence Equity Facility in early 2024 to mobilise venture capital for dual-use and defence startups (with a target of roughly €500 million including private co-investors) [1] [3] . These steps came with high-level political backing: EU finance ministers and the European Council explicitly mandated the EIB to adapt its lending policy to better support European defence firms , while safeguarding the Bank’s financial capacity [4] [2] . The EIB Group’s ensuing Security and Defence Action Plan (unveiled April 2024) and the creation of a one-stop “Security and Defence Office” signal a strategic pivot – making security and dual-use investment a core mission alongside the Bank’s traditional roles in climate and infrastructure [5] [6] . At the same time, the EIB Group has remained selective and responsible in this new domain.