European Investment Bank is poised to invest €70 billion into Europe's technology sector by 2027.
The European Investment Bank (EIB) is poised to invest a substantial €70 billion into Europe's technology sector by 2027. This ambitious initiative, dubbed TechEU, aims to significantly close the innovation gap with the United States and strengthen Europe's position in emerging technologies, including crucial areas such as artificial intelligence (AI) and military drones.
TechEU is described as the European Investment Bank Group’s platform dedicated to accelerating innovation across Europe, connecting innovators to funding and expertise to help bring "game-changing technologies to market". It will establish a centralised hub for financing requests from researchers and companies, seeking to streamline and accelerate EU funding processes.
EIB President Nadia Calviño has underscored the bank's renewed willingness to embrace risk in its financing strategies, recognising this as pivotal for startups operating in fast-moving markets. A key operational change under TechEU will see the EIB process startup financing applications within six months, a significant improvement from the current 18-month timeframe. Calviño describes this accelerated timeline as a 'gamechanger,' essential for keeping pace with the rapid nature of tech innovation.
This substantial investment is also expected to act as a catalyst for much larger private investment. The EIB projects that its backing, through plans to co-invest with private investors, could unlock up to €250 billion for the European tech ecosystem by inspiring confidence and mitigating risk.
Beyond innovation, the EIB has explicitly prioritised defence and security within its portfolio, acknowledging the strong synergies between these sectors and technological advancements. The EIB’s dedicated Security and Defence Office serves as a one-stop shop for financial support and expert assistance for businesses and innovators in these critical areas. This approach ensures that investments in defence can stimulate broader technological development, thereby fortifying Europe’s overall technological agenda. Digitalisation and technological innovation are also among the EIB's core priorities.
The initiative comes at a time when the current geopolitical landscape, including uncertainties generated by US economic policies, is seen by Calviño as an opportunity for Europe to attract international investors due to its inherent stability and market potential.
The European Investment Fund (EIF), as part of the EIB Group, also contributes to the TechEU initiative. The EIF aims to make it easier for Small and Medium-sized Enterprises (SMEs) and infrastructure projects to access finance, thereby contributing to the EIB Group's priorities and the EU's strategic policy objectives. As a large implementing partner for InvestEU, the EIF is aiming to generate approximately €145 billion in investments for businesses. The EIB is awaiting approval for this initiative from the 27 EU finance ministers, which is expected to take place next month.
This strategic move by the EIB directly supports broader European Union strategic priorities. The European Commission, as the EU’s main executive body, sets priorities for 2024-2029. Among these are Competitiveness and Security and defence. The EIB's investment in technology and defence directly aligns with these overarching EU goals, demonstrating how European financial institutions contribute to the EU's vision for a stronger, more secure, and technologically advanced Europe.
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