23 Mars 2025

Publié par I.R.C.E. - Institut de Recherche et de Communication sur l'Europe - Le Think et Do Tank des dynamiques européennes

Ambassade de Pologne : Europe's defence awakening: mobilising public budgets and private capital

L'Ambassade de Pologne en partenariat avec l'EPC recevait deux panels de haute qualité sur les questions des financements selon le programme annoncé ci-après.

minutes des interventions et après notamment questions IRCE : (commentaires FC)

augmentation du budget polonais au delà de 5% pour la défense dont 50% dans la rénovation, idée de création d'une banque de réarmement (pourra être acceptable dans un Buy European Act raisonné sans forcément d'objectifs chiffrés trop astreignants - voir nos publications)

Problèmes de financement avec les programmes à long terme (à modérer avec les lois de programmation et les Lois de finance qui à la fois évite le gaspillage annuel et maintiennent l'annualité budgétaire), les obligations ne sont qu'un élément

Rappel de l'effet de levier des institutions et essentiellement comme garantie, la titrisation est à analyser (voir en PJ les actions BPI France), la BEI a déjà évolué (voir notre événement de juillet mais reste encore très frileuse)

Evolution du regard vers la logistique au sein de l'OTAN, montée en puissance des exercices, espoirs d'augmentation de budget (pour la participation des Etats membres aux aspect opérationnels)

Trouver de réelles solutions pour combler les besoins

Faire profiter les territoires (et pourquoi pas sur des projets différents et par segmentation)

A noter une très intéressante intervention de BVI, association des fonds allemands - voir slides - sur le management des investissements

L'occasion était également de pouvoir discuter en aparté avec de nombreux intervenants notamment avec la BEI dans la suite des relations ainsi que le cabinet du Commissaire Andrius Kubilius dans le cadre de nos échanges sur le livre blanc et les orientations sur l'industrie de défense et aéronautique et les notions de retour industriel et juste retour

Despite the political consensus that Europe must urgently ramp up its defence and deterrence capabilities in response to Russia's aggression against Ukraine and the direct threat it poses to European security, the reality remains stark: only 23 of NATO's 32 allies currently meet the 2% GDP defence spending target. The situation is increasingly critical, as NATO Secretary General Mark Rutte has called for raising this benchmark to 3% given the serious nature of the current threats. Along the same lines, the EU Commissioner for Defence & Space Andrius Kubilius has called for "frontloading" the funds necessary to ramp up European defence, alluding to joint borrowing or "repurposing existing programmes, from the Recovery and Resilience Facility or the cohesion funds" to fund Europe's defence needs.

Achieving this goal is fraught with challenges. Many European governments face fiscal constraints that make increased defence spending not only difficult but also politically risky. Yet, the EU and its member states, acting together, have powerful tools at their disposal to ease the strain on national budgets. By leveraging the new Multiannual Financial Framework, working with the European Investment Bank to revise its lending policy that currently limits support to dual-use projects, and discussions about issuing common EU defence bonds, all together could pool the much-needed financial resources and meet NATO's ambitious defence planning targets.

The problem, however, extends beyond the constraints of public budgets. Much of the European financial sector, with a few notable exceptions, continues to treat the defence industry and defence investments as morally and ethically questionable and inconsistent with ESG standards. This prevailing attitude hampers efforts to channel private capital into the sector. As Chief of NATO Military Committee, Admiral Rob Bauer put it, "There is nothing more sustainable than peace." To address this paradox, it is crucial to develop solutions that unlock the power and potential of European banks, pensions funds and private investors to meet Europe's urgent security needs.

Through three panel discussions—on public funding and access to private capital—participants will explore how to mobilise resources from national and EU budgets, assess the potential for joint European borrowing, address the unique challenges of scaling up investments in the defence sector, and examine the evolving role of ESG principles in shaping its financial landscape. The debate will also examine how to overcome barriers to private investment, including the role of key financial institutions such as the European Investment Bank and commercial banks, and consider innovative approaches to engaging private and institutional investors, including pension funds.

Programme:

14.00 – 14.30: Opening remarks

- H.E. Jan Emeryk Rościszewski, Ambassador of Poland to France
- Michał Baranowski, Undersecretary of State, Polish Ministry of Economic Development and Technology (TBD)
- French official (TBD)

14.30 – 15.30: Opening conversation

Mobilising forces to boost European defence investments

Speakers:
- Prof. Marta Postuła, First Vice-President of the Polish Development Bank (BGK)
- Pierre Heilbronn, French special envoy for aid and reconstruction of Ukraine (online)
- Anne Fort, Deputy Head of Andrius Kubilius Cabinet, EU Commissioner of Defence & Space
- Zoe White, Director for Defence Investment at NATO

Moderator: Fabian Zuleeg, Chief Executive & Chief Economist of the EPC

15.30 – 15.45: Coffee break

15.45 – 16.45: Panel Debate 1 - Challenges in mobilising public budgets for European defence

Guiding questions:
- What are the key fiscal challenges faced by European countries in increasing defence spending, and how can these be overcome?
- How can the European Union's Multiannual Financial Framework be leveraged to support increased defence investment?
- What role can joint EU borrowing play in easing the financial burden on national budgets for defence spending?
- How can current instruments, such as European Defence Fund (EDF), European defence industry reinforcement through common procurement act (EDIRPA) or the currently negotiated European Defence Industrial Programme (EDIP) be better leveraged to support common defence spending?
- What role can the European Investment Bank and other national development banks play in unlocking private investment for defence projects, and what policy changes are needed?
Speakers:
- Catherine Bender Director of Security and Defence Office, European Investment Bank (EIB) (TBD)
- Polish Armament Group (PGZ) representative (TBD)
- Sophie Barbier, Director of European Affairs, Caisse des Dépôts
- Carl Johan Lind, European Defence Agency (EDA)

Moderator: Łukasz Jurczyszyn, Embassy of Poland in Paris

16.45 – 17.00: Coffee break

17.00 – 18.00: Panel Debate 2 - Challenges in mobilising private capital for European defence

Guiding questions:
- What are the main barriers preventing private capital from flowing into the European defence sector, and how can these be overcome?
- How can private financial actors, including banks, pension funds, and private investors, be encouraged to view defence investments as both profitable and sustainable?
- What new tools and financial instruments—such as investor-led initiatives (e.g., Climate Action 100+) or codes of conduct for responsible defence investment—could be explored to increase private sector involvement in defence?
Speakers:
- Sophie Lhelias, VP of MEDEF
- Mikołąj Firlej, Co-Founder and General Partner, Expeditions Fund
- Cedric Lowenbach, Director for Development, bpifrance
- Rudolf Siebel, Managing Director of BVI (Germans Investment Fund Association)
- David Lebain, Senior Director of Weinberg Capital Partners

Moderator: Paul Taylor, Senior Visiting Fellow, Defence and Security, EPC

Ambassade de Pologne : Europe's defence awakening: mobilising public budgets and private capital

#finance, #défense, #industrie