ASD Sec Gen quoted in Euractiv article on funding for defence industry
An article by Aurélie Pugnet published by Euractiv this week speculated on the European Commission's efforts to finalise funding solutions for the EU's defence industry ahead of a summit on 27 June. Internal Market Commissioner Thierry Breton has said €100 billion is needed to scale up the European defence industry.
Funding options discussed include joint procurement, private capital, and adapting the European Investment Bank's lending policies. EU leaders are also expected to call for increased defence spending, aligning with NATO targets. Jan Pie, Secretary General of ASD, was quoted in the article:
“Building defence capabilities is a long-term challenge that requires not only long-term planning and funding, but also a concerted effort of both the public and private sector pulling in the same direction towards a common objective ... Given the scale of the challenge, we believe the solution must involve a combination of different means, engaging both public and private sectors”.
ASD Position Paper on access to finance for the defence industry
According to the experience of our member companies, the biggest challenge for the European defence industry in terms of accessing private funding is currently that, due to ESG considerations, a significant portion of European equity and bond investors is refusing to invest in companies involved in defence activities.