Early discussions from group representing over €300 billion could lead to significant funding for Europe’s industrial revival.

The European Investment Bank (EIB) and Europe’s largest state‑backed development banks have discussed plans for a dedicated defence and security fund.

The proposed Security and Defence Infrastructure Fund, still in early stages with no target size or timeline disclosed, would channel public and private capital into critical security and defence assets and industrial projects supporting European resilience.

The group includes national development banks from Europe’s largest economies: Caisse des Dépôts – CDC (France), KfW (Germany), Cassa Depositi e Prestiti – CDP (Italy), Instituto de Crédito Oficial – ICO (Spain), and BGK (Poland).

Alongside the EIB, these institutions are large players in European capital markets, deploying more than €300 billion in financing in 2025.

The talks, held in Munich, build on a cooperation framework agreed in Warsaw in June 2025, which expanded the network of public lenders engaged in defence-related investment.

Analysts say a pooled fund backed by these institutions could help attract private investors to projects, bridging gaps left by traditional procurement and EU funding mechanisms such as the European Defence Fund and the €150 billion SAFE facility.