The European Defence Agency (EDA) has reached an agreement with the European Investment Bank (EIB) to facilitate collaborative defence programmes among European nations.

The agreement for the Cooperative Financial Mechanism (CFM) was signed between EDA chief Jorge Domecq and EIB vice-president Alexander Stubb.

CFM is aimed at creating funding support for budget-constrained member states participating in multinational defence programmes.

The arrangement will help countries that intend to join the multilateral projects but postpone their joining due to lack of budget allocation at the time of consideration.

It will seek to address the budget problems faced by collaborative projects due to ‘unsynchronised defence budgets’ of the participating countries.

Jorge Domecq said: “The CFM adds a very powerful instrument to our toolbox in the context of an enhanced momentum for defence cooperation fostered by the EU defence initiatives.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

“In future, mismatching budgetary cycles or provisional gaps in funding should no longer exclude member states from participating in multinational programmes.”

France, the Netherlands, Spain, Belgium, Cyprus, Greece, Bulgaria, Hungary, Portugal, and Lithuania have already given their assent to join the CFM arrangement.

The EDA expects more countries to join the agreement in the coming weeks.

Alexander Stubb said: “A lack of access to suitable financing solutions allowing to better synchronise joint resources is seen as one of the major impediments to the launch or implementation of defence related cooperative projects.

“Via the CFM, the EIB can strengthen its lending in support of public sector projects, with, inter alia, potential investments in the fields of dual-use RDI of defence or cybersecurity technologies, including projects envisaged under the EU’s Permanent Structured Cooperation PESCO.”

The lending programme will come into force after all interested members sign up.