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Global uncertainty as the war in the Middle East escalates means Europe “must reinforce its strategic autonomy” from to energy to defense, according to Nadia Calviño, president of the European Investment Bank, who urged lawmakers to go faster and be bolder.
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“These tensions are obviously not conducive to a framework of stability, peace and investment,” she told Euronews’ flagship morning show Europe Today. “The current escalation makes it more urgent than ever for Europe to reinforce its autonomy.”
As Europe looks to re-arm by 2030, the EIB has emerged as a catalyst for defence spending and projects, and is facing pressure to become the equivalent of a European bank for defence stepping way from its traditional mandate.
The EIB spent 5% of its overall budget on defence, or roughly €4 billion. Still, under its current mandate, the bank is banned from investing directly in weapons or ammunition, but is allowed to finance so-called “dual use” equipment, like drones and helicopters.
While not directly involved in the US-Israeli military operation against Iran, the war comes with strings attached for Europe too, as the global energy market is rattled by Iranian strikes on the Gulf countries. This week alone, European benchmark gas prices jumped 80% in two days while brent crude edged closer to 84 dollars a barrel.
For Europe, energy has become its Achilles heel since the sudden rupture of cheap Russian gas flows after its invasion of Ukraine in 2022. Since then, the EU has sought to diversify suppliers from the United States, the Gulf and third countries like Azerbaijan.
Calviño said the difficult lessons from the war in Ukraine mean European companies have built alternative resources, but acknowledged it has been a drag on competitiveness compared to other regions like the US and China, which have access to cheaper energy and lower production costs associated to power supplies.
“European companies have shown they can adjust and can be flexible in changing conditions. Since the beginning of the war in Ukraine, Europe has become much more resilient. I am confident we can tackle this crisis too,” she added.
Asked about a diplomatic clash between the US and Spain following President Donald Trump’s call to impose a trade embargo on Madrid, Calviño, who served as economy minister and was a vice-president under the government of Pedro Sánchez, said she hopes for de-escalation but insisted that respecting international law is critical.
“Europe speaks with one voice in this area (trade) and we are united. We all benefit from respecting international law and contributing to global peace,” she added.
“The European Union is a force for good and win-win partnerships. I am sure we will continue to try to de-escalate,” she told Euronews.
On Wednesday during a speech at the annual European Investment Bank forum, Calviño said Europe has emerged as a “sanctuary” for science and rule of law.
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