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Bankers Race to Catch Up With EU Defense Goals in Stunning Reset


Published on 2025-03-09 06:41:44 - Bloomberg
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  • As Europe makes defense the bloc's No. 1 priority, it's bumping up against its own bankers. Defense industry executives, politicians and senior bankers alike are now calling for an urgent revamp of regulations and internal processes to make it easier for banks to quickly channel funds into arms manufacturers and military contractors.

The article from MSN discusses how European Union (EU) bankers are rapidly adjusting to new defense spending goals set by the EU, marking a significant shift in policy due to heightened geopolitical tensions, particularly with Russia. The EU has set a target for member states to increase defense spending to 2% of their GDP, a move influenced by the ongoing war in Ukraine and the need for Europe to bolster its own defense capabilities independently of the U.S. This push for increased military expenditure has led to a scramble among financial institutions to fund defense projects, with banks like BNP Paribas and Deutsche Bank expanding their defense-related financing. The urgency to meet these targets has also sparked discussions on the ethical implications of investing in defense, with some banks previously reluctant to engage in this sector now reconsidering their stance due to the strategic necessity highlighted by current events. This reset in defense policy and banking practices reflects a broader European effort to enhance security and strategic autonomy.

Read the Full Bloomberg Article at:
[ https://www.msn.com/en-us/money/other/bankers-race-to-catch-up-with-eu-defense-goals-in-stunning-reset/ar-AA1AxGwe ]