European bankers are restructuring strategies for the EU's defense reset.


Funding for the defense industry in Europe is becoming complicated due to banking rules
In Europe, the problem of financing the defense industry is growing due to opposition from banks. Industry leaders are calling for a change in the rules to ease access to funds. Many companies in the defense sector encounter difficulties in opening bank accounts. Banks refer to internal rules that block financing for defense projects. This complicates the development of the defense industry in Europe.
Deutsche Bank executives call for simplification of financing rules
Europe needs to 'simplify and harmonize' sustainable financing rules to make the defense sector more attractive to banks, according to Deutsche Bank executives. However, there has been no progress in this direction.
The EU imposes restrictions on financing for the defense industry
According to Morningstar DBRS, the EU taxonomy creates barriers to financing the defense industry. There is a confrontation between Europe and the US on this issue. American banks actively finance the defense industry, while European banks face restrictions due to ESG rules.
Small companies in Europe face difficulties in obtaining financing
Small companies in Europe have significant difficulties obtaining financing. Often, they are forced to prove that they are not violating ESG rules, which makes it impossible for them to access banking services. This creates major problems for the industry's development and competitiveness.
Read also
- NATO has committed to spending 5% of GDP on defense and recognizes Russia as a long-term threat: what it means for Ukraine
- The enemy is intensifying assaults on the Defense Forces' positions in the Vovchansk and Lyptsi areas
- The area of mined territories in Ukraine has decreased by 20%
- Attacks by enemy drones: why the effectiveness of air defense has halved
- AI Against Mines: Ukrainian Development Mines Eye Changes the Rules of Demining
- Military Registration: Which Regions Are Breaking Records for the Number of Fines from TCC?