EIB Group Announces Expansion of Defence Equity Facility and New VC Fund for European Defence Tech at Luxembourg Forum
4 March 2026
At the 4th EIB Group Forum held in Luxembourg from March 3–5, 2026, EIB President Nadia Calviño unveiled significant new support measures aimed at reinforcing European defence and technological sovereignty. This event, themed 'A Strong Europe in a Changing World,' gathered policymakers, innovators, academics, and business leaders to discuss critical strategies for Europe's future competitiveness.
The centerpiece of the announcements was the expansion of the successful **Defence Equity Facility**, managed by the European Investment Fund (EIF). This facility acts as an anchor investor for equity investments into European defence companies, channeling capital into specialized private funds that support growth in the defence sector. This initiative is designed to ensure that innovative ideas, technologies, and companies originating in Europe can scale and thrive domestically, rather than seeking opportunities abroad. Calviño emphasized, “These tools will help ensure that ideas, technologies and companies born in Europe can grow and thrive in Europe,” positioning Europe as a global superpower capable of leading future advancements.
Further bolstering this commitment, the EIB Group plans to announce another major investment this week into a pan-European venture capital fund dedicated to deep tech and defence technologies. This move aligns with broader efforts to advance the Savings and Investment Union, which supports businesses in innovating, expanding, and competing on a global stage. European Commission President Ursula von der Leyen, addressing the forum, highlighted the EIB's indispensable role: “Europe must become more independent and more competitive. In this the EIB is an indispensable partner because your investments multiply opportunities and will help us to deliver on our goals.”
The forum's discussions also touched on the need for accelerated investments in critical infrastructure, including grids, storage, and cross-border interconnections, while addressing bottlenecks in the energy transition. Coordination in defence investments is increasingly vital as EU governments eye spending up to 5% of GDP on security and defence by 2035. The EIB Group's report underscores that removing single market barriers could boost firms’ investment intensity by 10%, particularly in intangible assets essential for innovation, with free-trade agreements potentially increasing exports by over 20% to partner countries.
Additional announcements at the forum include new financing commitments for Europe's security and defence capabilities, energy efficiency, and tech innovation. These encompass deepened cooperation with EU partner financial institutions, clean energy projects in Africa, and a new partnership with the World Trade Organization. The EIB Group also launched its third Gender Action Plan to promote gender equality and women’s economic empowerment across Europe and beyond. For B2B defence stakeholders, these developments signal substantial new funding streams and equity opportunities, particularly for deep tech firms in defence, dual-use technologies, and related sectors. Defence contractors, technology providers, and system integrators stand to benefit from mobilized private capital, enhanced R&D support, and strategic investments that prioritize European sovereignty.
This forum represents a pivotal moment for the European defence industry, providing concrete tools for scaling operations amid geopolitical shifts. The Defence Equity Facility's expansion, in particular, offers a direct pathway for venture capital deployment into high-potential defence startups and mid-caps, fostering a robust ecosystem. As governments ramp up defence spending, such facilities will play a crucial role in bridging funding gaps, enabling rapid prototyping, and commercialization of next-generation systems in areas like radar, sensors, communications, cybersecurity, and electronic warfare. Industry partners should monitor forthcoming details on the new VC fund, as it promises to catalyze further private investments, ensuring Europe's defence technological base remains competitive and self-reliant.
In summary, these EIB initiatives not only inject vital capital but also align with EU-wide priorities for collaborative R&D and industrial ramp-up, directly impacting procurement agencies and suppliers by creating more predictable investment landscapes.