The European Union’s investment bank has agreed to lend the multinational aviation and aerospace giant Airbus a record-breaking 3 billion euros ($3.41 billion), to help finance the expansion of its commercial space and defense operations.
It is the largest commercial loan the European Investment Bank has ever made, and its actions highlight its confidence in the company, EIB President Nadia Calvino told the Euronews website, while explaining that the loan is also an “illustration of how Europe is ramping up its capacity and strategic autonomy” at a time when it is being “attacked on all sides”.
“Airbus is the great success story of Europe,” Calvino said of the company, which is partly owned by the governments of France, Germany and Spain.
“It’s a profitable company, a global leader in key areas — aerospace, security and defense. And so that’s why I think it is important to also flag those areas where we are moving in the right direction,” she said.
The Luxembourg-based lender’s investment will support research and development and spending made before 2030 in France, Germany and Spain.
Both the loan and Airbus’ expansion plans are being interpreted as part of Europe’s drive to become more competitive technologically and less reliant on the United States for military support, changes that have largely been driven by US President Donald Trump, who has repeatedly threatened to take his country out of NATO.
The EIB has recently started investing in European defense infrastructure for the first time and plans to loan 4.5 billion euros this year to companies involved in projects in Europe’s security and defense sectors.
Calvino told Euronews that the bank has “proven to be flexible in adapting to Europe’s changing priorities” at a time when a “new geopolitical context” is affecting the continent.
“I always say we (in Europe) are unstoppable when we join forces,” she said. “What I see is a strong determination on the part of our leaders to continue facing those challenges together.”
Industrial base
Reuters reported that the EIB is eager to help strengthen Europe’s industrial base in general, in response to competition from the US and China.
In light of that competition, Airbus has recently pledged to merge its satellite operations with French aerospace company Thales and the state-owned Italian giant Leonardo, in the hope of creating a European rival to US billionaire Elon Musk’s Starlink.
Thomas Toepfer, chief financial officer of Airbus, said the EIB loan “reinforces the depth of our strategic partnership with the EIB, supporting the commercial and defense research that drives European industrial competitiveness”.
“The highly competitive terms and extended flexibility grant us the maximum optionality to manage our balance sheet, minimize the cost of carry, and sustain our long-term investments in aerospace innovation,” Toepfer added.
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