24 June 2024

European Investment Bank plans to increase its investment in defense

BERLIN, June 24 (Reuters) - The European Investment Bank (EIB) intends to ramp up its investments in European defence such as drones, satellites and cyber security, aiming to inject a further 6 billion euros ($6.4 billion) into the sector, its head told Reuters.

EU top cop launches bombshell corruption probe into former European Investment Bank chief

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EU top cop launches bombshell corruption probe into former European Investment Bank chief : r/worldnews

JUNE 24, 2024 2:03 PM CET

BY BJARKE SMITH-MEYER AND ELISA BRAUN

BRUSSELS — EU prosecutors tasked with investigating serious financial crimes are probing the former president of the European Investment Bank.

The European Public Prosecutor’s Office (EPPO) on Monday said in a statement that its investigation involved “two individuals suspected of corruption and abuse of influence, as well as the misappropriation of EU funds.”

Werner Hoyer, who retired from his post as EIB president at the end of last year, faces a corruption case, his lawyer confirmed to POLITICO.

Police officers from Germany and Luxembourg have in recent months seized material related to the investigation, according to two officials who were granted anonymity to describe confidential matters to POLITICO. Officers also searched Hoyer's home.

Hoyer has denied any wrongdoing through his lawyer, who said that the EPPO’s probe focuses on the departure of an EIB employee and the compensation paid to him in this context. Hoyer signed off on the exit package, in accordance with EIB rules, ensnaring him in the probe — even though he was not part of the negotiations, the German's legal team said.

"The allegations against me are downright absurd and, unfounded,” Hoyer said in an emailed statement to POLITICO. “I now expect them to be fully investigated and clarified and ask the EIB to co-operate fully with the EPPO. I am also co-operating fully with the EPPO and demand a full clarification of the facts from there."

"We are calmly awaiting the investigations," Hoyer's lawyer Nikolaos Gazeas said. "They will prove that the criminal allegations against my client are unfounded and downright absurd. This is also why my client has expressly requested that his immunity and that of the EIB premises be waived so that this allegation can be clarified."

POLITICO has reached out to the second person involved in the investigation for comment, but has not yet received a response.

A spokesperson for the EIB said the lender “cannot comment on ongoing external investigations such as this. As is the Bank’s usual practice, we will cooperate fully with the European Public Prosecutor’s Office on this matter as required.”

The investigation started after the EU’s anti-fraud agency OLAF flagged the case to the EPPO, which has investigative powers to probe cross-border cases, bring potential culprits to court and ask for reparation for the EU’s interests.

A spokesperson for EPPO said it would not comment on an ongoing investigation.

The Luxembourg-based EIB functions as the EU’s lending arm and is instrumental in boosting development and integration across the bloc by offering loans, guarantees and investment in the public and private sectors.

Reuters

11 hours ago

European Investment Bank steps up multi-billion defence investments | Reuters

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The European Investment Bank plans to increase its investment in defense

MONDAY, JUNE 24, 2024, 19:59 - ALEXEY PAVLISH, EUROPEAN TRUTH

The European Investment Bank (EIB) intends to increase its investment in European defense, intending to inject another 6 billion euros into the sector.
About this in an interview Reuters said EIB President Nadia Calvigno, conveying "European truth".
According to her, it is necessary to strengthen the European security and defense industry.
"We have allocated 8 billion euros for investment in this area, of which only 2 billion have been invested,"

– said Calvinho.

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She said a special team had been set up to invest. "We have set up a special office to accelerate the development of the allocated 6 billion euros," she said.
"We are actively cooperating with European industry, so we should expect a number of facilities to be developed in the second half of the year," Calvigno said, highlighting border security, military mobility, demining and military hospitals.

The EIB, which supports the countries of the region, has a great financial impact, although it is cautious about supporting defense. He supported a satellite facility in Poland and a German drone manufacturer, but stayed away from ammunition.

The EIB has recently changed the rules underlying its activities, allowing it to lend or indirectly invest in defense companies.

Tim Lawrence of the International Institute for Strategic Studies believes the move is symbolically important and will signal to other banks, which often take the example of the EIB, that support for defense companies is acceptable.

"Any European tank consists of thousands of parts made by hundreds of small defense companies across Europe. These companies tried their best to get loans and benefit the most from it,

"Of course, 8 billion euros – is 476 billion dollars compared to European defense spending in 2024, and even more so with US spending of $ 968 billion",

– said the expert.

It will be recalled that the Minister of Foreign Affairs of Ukraine Dmitry Kuleba spoke at a meeting of the heads of the Ministry of Foreign Affairs of the EU member states at the invitation of the top diplomat of the EU Josep Borrel and stated the need accelerate military assistance.
It also became known that EU countries on Monday approved the first tranche of up to 1.4 billion euros for military aid to Ukraine, which will come from revenues from frozen Russian assets.

European truth