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A German army Leopard 2 tank.

A German army Leopard 2 tank. (Andrey Rudakov/Bloomberg)

The European Investment Bank has proposed a plan that will make it easier and faster to fund defense projects in a bid to boost support for Europe’s security and defense industry.

The rule change was presented by President Nadia Calvino to finance ministers in Luxembourg on Friday. The definition changes mean that companies have more leeway for using the credit line for defense and the bank will waive the requirement that dual-use projects derive more than 50% of their expected revenues from civilian use. However, they need to provide credible proof that the project is for dual use purposes.

Another update is a ‘one-stop-shop’ to be put in place on May 1, aimed to streamline the application process for funding, according to a statement.

The definition change is to be approved by the board of directors in May, and it would widen the scope of small and medium-sized enterprises that can apply for the funding. Despite cutting the percentage for civil use, companies still need to provide credible proof the project also serves civilian issues.

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