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27 Jun 25. German industrial top brass to hold talks with EU chief on sector challenges. Germany will send some of its top industrial CEOs to Brussels next week to hold talks with EU chief Ursula von der Leyen on how to preserve the sector’s competitiveness in light of trade wars and high energy costs, a source with direct knowledge of the matter said. Spearheaded by Hendrik Wuest, the state premier of North Rhine-Westphalia, the meeting will be attended by the CEOs of Thyssenkrupp, Lufthansa, Rheinmetall and Lanxess, among others, the source said. (Source: Reuters)
27 Jun 25. Turkey hopes for progress on F-35 jets after Trump meeting, Erdogan says. President Tayyip Erdogan said Turkey has not given up on acquiring F-35 fighter jets from the United States and has conveyed its desire to rejoin the programme from which it was removed over its purchase of Russian defence systems. Speaking to reporters on a return flight from a NATO summit in The Hague — where he met U.S. President Donald Trump — Erdogan said he hoped for progress following their discussions on the issue.
“We have not given up on the F-35s. We are discussing our intention to return to the programme with our counterparts,” he was cited as saying by his office on Thursday. “We discussed the issue in our meeting with Mr. Trump, talks at a technical level have started. God willing, we will make progress.”
Washington imposed sanctions on its NATO ally Ankara in 2020 over its purchase of Russian S-400 missile defence systems, while also removing it from the F-35 programme where it was both a buyer and manufacturer. Turkey has repeatedly said its removal was unjust and demanded to be reinstated or reimbursed. (Source: Reuters)
26 Jun 25. New British nuclear strike jet can’t be refuelled by RAF. In a Commons exchange following the UK’s announcement that it will join NATO’s Dual-Capable Aircraft (DCA) nuclear mission with a fleet of F-35A fighters, former Armed Forces Minister and current Shadow Defence Secretary James Cartlidge pressed ministers on unanswered questions about the capability and readiness of the planned fleet. While Cartlidge welcomed the decision “in principle,” he questioned the details: “What is the anticipated in-service date for the F-35As? Will they be in service or merely delivered? Will the government still order the remaining F-35Bs as planned? And how will they be refuelled, given current operational sovereignty issues?” He also raised the possibility of alternative air-delivered options that might draw more heavily on the UK’s industrial base, suggesting “Storm Shadow Typhoon” as one candidate. He warned that the move highlighted broader shortfalls in defence planning: “Doesn’t this show why we need a robust plan to get to 3% on defence in this Parliament, rather than Labour’s smoke and mirrors?”
Responding, Defence Minister Maria Eagle said that the government was “hopeful that the aircraft will start delivering before the end of the decade,” and confirmed that the UK would still proceed with the next batch of 15 F-35Bs, alongside the 12 new F-35As.
However, Eagle’s response to the question of air-to-air refuelling raised eyebrows. Since the RAF’s Voyager fleet lacks the boom-type system required by the F-35A, the aircraft cannot currently be refuelled by UK tankers. “This is a NATO mission,” Eagle told the House. “NATO, of course, will be able to do the air-to-air refuelling.” According to the RAF, the primary function of the F-35As, at least in the near term, will not be as frontline nuclear delivery assets but as training platforms. “Day-to-day, the F-35As will be used in a training role on 207 Squadron, the Operational Conversion Unit (OCU),” the RAF has said. Because the F-35A carries more fuel than the STOVL B variant, it offers extended airborne time during training sorties. It also requires less maintenance, increasing availability for pilot instruction. “These factors combined will improve pilot training and reduce the amount of time for pilots to reach the front-line squadrons.” (Source: ukdefencejournal.org.uk/)
25 Jun 25. NATO Leaders Pledge to Increase Defense Spending. During a press briefing today on the last day of the NATO Summit in The Hague, Netherlands, President Donald J. Trump emphasized the need for all member states to share the financial burden of European defense spending. Alliance members, he said, agreed to increase their annual defense spending, ultimately up to 5% of their gross domestic product.
“It’s vital that this additional money be spent on very serious military hardware, not bureaucracy, and hopefully that hardware is going to be made in America because we have the best hardware in the world,” Trump said, noting the successful air defense of Al Udeid Air Base in Qatar by the United States against incoming Iranian missiles.
The president also mentioned the war in Ukraine, which he said has highlighted the urgency of rebuilding the defense industrial base, both in the United States and among the allied nations. NATO Secretary General Mark Rutte said the summit was a success and highlighted the Hague Defense Investment Plan, which he said, “will fuel a quantum leap in our collective defense.”
“Together, allies have laid the foundations for a stronger, fairer and more lethal NATO,” Rutte added.
Trump said the June 21, 2025, attack on Iran’s nuclear facilities by the U.S. was very successful and those sites were totally obliterated. Defense Secretary Pete Hegseth, who was with the president, said it’s important to honor the skill and courage of the pilots who flew the fighter jets and refuelers during the attack on Iran’s nuclear facilities.
“No other military on Earth could have done it, and now this incredible exercise of American strength has paved the way for peace with a historic ceasefire agreement,” Trump said, referring to the cessation of hostilities between Israel and Iran. The president added that he’s hoping to obtain a peace agreement with Iran. (Source: U.S. DoD)
25 Jun 25. The Hague Summit Declaration issued by the NATO Heads of State and Government participating in the meeting of the North Atlantic Council in The Hague 25 June 2025
- We, the Heads of State and Government of the North Atlantic Alliance, have gathered in The Hague to reaffirm our commitment to NATO, the strongest Alliance in history, and to the transatlantic bond. We reaffirm our ironclad commitment to collective defence as enshrined in Article 5 of the Washington Treaty – that an attack on one is an attack on all. We remain united and steadfast in our resolve to protect our one bn citizens, defend the Alliance, and safeguard our freedom and democracy.
- United in the face of profound security threats and challenges, in particular the long- term threat posed by Russia to Euro-Atlantic security and the persistent threat of terrorism, Allies commit to invest 5% of GDP annually on core defence requirements as well as defence-and security-related spending by 2035 to ensure our individual and collective obligations, in accordance with Article 3 of the Washington Treaty. Our investments will ensure we have the forces, capabilities, resources, infrastructure, warfighting readiness, and resilience needed to deter and defend in line with our three core tasks of deterrence and defence, crisis prevention and management, and cooperative security.
- Allies agree that this 5% commitment will comprise two essential categories of defence investment. Allies will allocate at least 3.5% of GDP annually based on the agreed definition of NATO defence expenditure by 2035 to resource core defence requirements, and to meet the NATO Capability Targets. Allies agree to submit annual plans showing a credible, incremental path to reach this goal. And Allies will account for up to 1.5% of GDP annually to inter alia protect our critical infrastructure, defend our networks, ensure our civil preparedness and resilience, unleash innovation, and strengthen our defence industrial base. The trajectory and balance of spending under this plan will be reviewed in 2029, in light of the strategic environment and updated Capability Targets. Allies reaffirm their enduring sovereign commitments to provide support to Ukraine, whose security contributes to ours, and, to this end, will include direct contributions towards Ukraine’s defence and its defence industry when calculating Allies’ defence spending.
- We reaffirm our shared commitment to rapidly expand transatlantic defence industrial cooperation and to harness emerging technology and the spirit of innovation to advance our collective security. We will work to eliminate defence trade barriers among Allies and will leverage our partnerships to promote defence industrial cooperation.
- We express our appreciation for the generous hospitality extended to us by the Kingdom of the Netherlands. We look forward to our next meeting in Türkiye in 2026 followed by a meeting in Albania.
25 Jun 25. UK to purchase F-35As and join NATO nuclear mission as Government steps up national security and delivers defence dividend. The UK will purchase 12 new F35A fighter jets and join NATO’s dual capable aircraft nuclear mission in a major boost for national security.
- The UK will purchase 12 F-35As and join NATO’s nuclear mission as the government delivers greater security for working people through its Plan for Change
- Biggest strengthening of the UK’s nuclear posture in a generation, complementing the UK’s existing sea-borne deterrent
- Order will support 20,000 jobs across the UK, with over 100 UK-based suppliers contributing to the F35 programme
The UK will purchase 12 new F-35A fighter jets and join NATO’s dual capable aircraft nuclear mission in a major boost for national security. The Prime Minister will announce at the NATO summit tomorrow [Wednesday] that the UK intends to buy at least a dozen of the dual capable aircraft, which can carry both nuclear and conventional weapons. The decision will support 20,000 jobs in the F35 programme in the UK, with 15% of the global supply chain for the jets based in Britain, supporting highly skilled jobs and opportunities for working people and delivering a defence dividend across the country. The new fast jets will be based at RAF Marham, with the Government expected to procure 138 F35s over the lifetime of the programme. The procurement of 12 F-35A rather than 12 F-35B as part of the next procurement package will deliver a saving of up to 25% per aircraft for the taxpayer. The purchase represents the biggest strengthening of the UK’s nuclear posture in a generation. It also reintroduces a nuclear role for the Royal Air Force for the first time since the UK retired its sovereign air-launched nuclear weapons following the end of the Cold War. The UK will deploy the jets as part of NATO’s nuclear Dual Capable Aircraft mission, strengthening NATO’s nuclear deterrence posture.
Prime Minister Keir Starmer said: “In an era of radical uncertainty we can no longer take peace for granted, which is why my government is investing in our national security, ensuring our Armed Forces have the equipment they need and communities up and down the country reap the benefits from our defence dividend. Supporting 100 businesses across the country and more than 20,000 jobs, these F35 dual capable aircraft will herald a new era for our world-leading Royal Air Force and deter hostile threats that threaten the UK and our Allies. The UK’s commitment to NATO is unquestionable, as is the Alliance’s contribution to keeping the UK safe and secure, but we must all step up to protect the Euro-Atlantic area for generations to come.”
From Samlesbury to Stevenage, UK based firms such as BAE Systems, Cobham, GE Aviation, Honeywell, Martin Baker, MBDA, QinetiQ, Rolls Royce, Leonardo UK, Ultra Electronics and EDM Limited all play a vital role in the supply of stealth fighter jets. The Strategic Defence Review recognised that the UK is confronting a new era of threat, including rising nuclear risks. It recommended that the UK further strengthen our commitment to effective deterrence and our partnership with our NATO Allies, building on our unique role as the only European power to pledge our nuclear deterrent to defend our NATO allies. The DCA mission is a critical part of NATO’s nuclear deterrence, helping to keep people across the alliance safe.
NATO Secretary General Mark Rutte said: “The UK has declared its nuclear deterrent to NATO for many decades, and I strongly welcome today’s announcement that the UK will now also join NATO’s nuclear mission and procure the F-35A. This is yet another robust British contribution to NATO”.
The UK has always supported NATO’s nuclear mission, by providing conventional capabilities and resources such as aircraft and airspace to its annual exercises.
Defence Secretary John Healey MP said: “The Strategic Defence Review confirmed we face new nuclear risks, with other states increasing, modernising and diversifying their nuclear arsenals. And it recommended a new UK role in our collective defence and deterrence through a NATO-first approach. This commitment is an embodiment of NATO first, strengthening the alliance while at the same time using defence as an engine for growth to create jobs across in the UK. Our commitment to Britain’s nuclear deterrent is absolute, underpinned by our ‘triple-lock’: building four new nuclear submarines in Barrow-in-Furness, in Cumbria; maintaining our continuous at sea nuclear deterrent; and delivering all future upgrades needed. ”
This announcement further underlines the UK’s unshakeable commitment to NATO, and the principle of collective defence under Article V. The UK remains committed to the goal of a world without nuclear weapons and upholds all our obligations under the NPT. This announcement follows the SDR’s commitments to deliver up to 12 new conventionally armed, nuclear-powered submarines and £15bn this parliament to deliver the sovereign nuclear warhead programme.
Additional information
- Alongside the strategic nuclear forces of the Alliance, NATO’s nuclear deterrence posture also relies on the United States’ nuclear weapons forward-deployed in Europe, as well as on the capabilities and infrastructure provided by Allies.
- A number of NATO countries contribute a dual-capable aircraft (DCA) capability to the Alliance. These aircraft are central to NATO’s nuclear deterrence mission and are available for nuclear roles at various levels of readiness. In their nuclear role, the aircraft are equipped to carry nuclear weapons in a conflict, and personnel are trained accordingly.
(Source: https://www.gov.uk/)
Commenting on the purchase of the F-35A strike fighters Dr David Blagden, from the University of Exeter’s Strategy and Security Institute, said:
“The purchase of a small fleet – initially twelve – F-35A strike fighters comes with both up- and downsides. With its longer range and greater payload (compared to the B variant of the F-35 that the UK already operates), it can fulfil longer-range strike missions. Crucially that includes certification for the dropping of US-owned B61 nuclear bombs – so the UK will now be able to join NATO’s dual-key nuclear force, alongside the other European NATO members that already fulfil that mission. There may also be some additional modest benefits to a split F-35 fleet (e.g. using the cheaper and less complex A variant aircraft for training when they are not assigned on operational roles), plus it gives the UK something to announce around the 2025 NATO Summit in The Hague that will please both Trump’s US (buying American weapons to support an American-led mission) and vulnerable European allies (which want as much protection against Russian aggression as they can get).
“At the same time, however, there are potential drawbacks. Shifting to an F-35 fleet split between A and B variant aircraft will necessitate more complex supporting infrastructure and supply chains (many parts are different between the two variants), and thus more expense (potentially offsetting the A variant’s lower purchase price). Because only the short-takeoff B variant aircraft can be used on the UK’s aircraft carriers, a shift to more A variant aircraft could make it harder to generate meaningful carrier air groups for deployed naval operations. Spending on more US-made and -supported F-35s might also divert investment away from Britain’s own next-generation combat aircraft programme, Tempest (a UK collaboration with Italy and Japan).
“The main rationale for Britain to acquire a ‘tactical’ nuclear capability – weapons that can be used in limited capacities, e.g. against bases or vehicle columns, rather than for full strategic retaliation against an attack on UK/allied cities – would be having our own means to deter Russian use of its tactical nuclear weapons in circumstances in which the US was unwilling or unable to protect the UK, and in which the Royal Navy’s submarine-borne Trident nuclear missile system would be overkill (and therefore lack credibility). Yet buying another US-made aircraft, with US-controlled source code, to carry US-owned nuclear weapons actually deepens UK dependence on US goodwill. As such, this may make sense if the combination of F-35A aircraft with US B61 bombs is just an intermediary step on a road back to a sovereign UK tactical nuclear capability. But it makes less sense if the purpose is simply for the UK to become one more European NATO carrier of US nuclear bombs (of which there are already plenty).”
23 Jun 25. Germany to raise defence spending to 3.5% of GDP by 2029, sources say.
- Summary
- Germany’s 2025 and 2026 budget drafts include record investments
- NATO summit to discuss increasing defence spending to 5% of GDP
- Germany to borrow 378.1 bn euros for defence
Germany will raise defence spending to 3.5% of economic output by 2029 funded through a nearly 400 bn euro borrowing programme, sources said on Monday, as Chancellor Friedrich Merz aims to send a strong signal ahead of this week’s NATO summit.
After low spending following the end of the Cold War, Germany complied with the NATO alliance’s target of 2% of GDP for the first time in three decades in 2024 with a special fund created by Merz’s predecessor after Russia’s invasion of Ukraine.
Germany’s total defence spending would go up from 95 bn euros ($108.89 bn) in the draft budget for 2025 to 162 bn euros in the budget framework for 2029, the sources said. (Source: Reuters)
22 Jun 25. £275m UK Skills Package announced.
- Workers in roles like engineering and defence will have access to thousands of new training and apprenticeships as government builds skilled workforce of the future.
- Over £275m cash boost in the modern Industrial Strategy will transform the UK’s skills offer, creating new Technical Excellence Colleges and cutting-edge courses in areas like defence and engineering.
- Strategy will outline a 10-year plan for national renewal tomorrow as part of our Plan for Change and will be closely followed by a new Trade Strategy setting out how the UK will be the best-connected place to do business in the world.
Thousands of Brits are set to benefit from over £275m in skills investment as part of one the most transformative skills overhauls the UK has seen in a generation. It comes as the Business Secretary vows to “power the Industrial Strategy by investing in working people” as the government puts people at the heart of its plan to rebuild British industry with a bold new Industrial Strategy that backs British talent, not foreign labour. The new funding includes over £100m to boost engineering skills, with capital investment provided by our £200m Skills Mission Fund. The new Fund will support further education providers to deliver new facilities, equipment, technical qualifications, and collaboration with other training providers and employers across the country. This includes creating new Technical Excellence Colleges to specialise in training the skilled workforces that local economies need. The total funding is expected to train thousands more skilled workers by 2029, including mechanical, production, electrical and civil engineers, plus programmers and IT technicians and systems designers. The investment responds directly to the UK’s growing domestic skills gaps. Despite having world-class universities and a highly educated workforce, too many people are locked out of opportunity, and too many businesses are struggling to find the talent they need. Currently one in seven young people are not in education or employment and the number of people taking part in apprenticeships have fallen by almost one fifth between 2016/17 and 2023/24. The Strategy will also set out a bold vision to reverse the overreliance on foreign labour and build a future-ready workforce that can drive innovation and inclusive growth across the UK. Where previous governments have failed to plug the UK’s skills shortage and ensure its apprenticeship and education offers are fit for the industries of the future, this government understands that the competitiveness of our high-growth sectors depend on their access to skills and talent. The UK’s modern Industrial Strategy will help give young people the skills and experience they need to secure well-paid jobs and upskill people in existing work. If they stay on their current trajectory, the Industrial Strategy’s growth driving sectors will create 1.1 m new jobs by 2035 and deliver growth as part of the plan for change.
Business Secretary Jonathan Reynolds said: “To make Britain the best place in the world to do business, we also need the best workforce in the world with the right skills and expertise to thrive. Our modern Industrial Strategy will be powered by investing in British people. It will help transform our skills system to end the overreliance on foreign labour, and ensure British workers can secure good, well-paid jobs in the industries of tomorrow and drive growth and investment right across the country, making our Plan for Change a reality. Where past governments have watched from the sidelines as British industry has faced under-investment and opportunities have been shipped overseas, this government is leading the way, and our modern Industrial Strategy is a downpayment on a decade of renewal.”
Education Secretary Bridget Phillipson said: “Skills rightly run right through the heart of this Industrial Strategy because they are key to breaking the link between background and success for young people and delivering prosperity for our country. Our commitment to growing the economy and delivering for people across the country is backed up with real investment, getting thousands of our young people on to courses and into jobs through our Plan for Change. This package builds on the reforms we have already made, slashing red tape and boosting funding to get businesses to invest in homegrown talent, with more people in skilled work and driving Britain forward again.”
The modern Industrial Strategy will be bold and target interventions where they are needed the most to ensure the economy has the skills it needs for the future, including specific funding for skills in defence, digital and engineering and construction which the Government has launched, rather than leaving industry to fend for itself and let the markets decide. The Strategy will create a culture of skills first so that every individual can access courses that are aligned to the needs of employers in their area. While the Government continues to roll out new shorter duration and foundation apprenticeships, the Industrial Strategy will go further by introducing new short courses in areas like digital, AI and engineering to help people train and upskill for the jobs of the future. Alongside this, the Strategy will also boost skills and opportunities in the defence sector, including by providing funding for courses for defence-focused skills, and investment in cutting-edge university facilities to increase places for defence skills provision. The funding package revealed today forms part of the Government’s decisive action to overhaul the UK’s skills system, following a £3 bn apprenticeship budget which will unlock 120,000 training opportunities in careers like construction, carpentry and healthcare support announced just last month
Stephen Phipson CBE, CEO at Make UK said: “We know that the foundation of any successful Industrial Strategy is people. Make UK strongly welcomes the Government’s investment into engineering, and its commitment to reducing the skills gap in our sector. In supporting provision for both recruitment and upskilling, this is a promising start to filling the nearly 50,000 existing vacancies in manufacturing. Looking ahead, it is critical that Government continues to work with industry and develops a long-term vision for skills in the sector. This starts with ensuring that all contributions made by employers can be used by employers from both the Growth and Skills Levy and the Immigration Skills Charge, and delivering the crucial funding reforms to ensure the training market is equipped and funded to train the next generation of manufacturers. We look forward to working with the Government to fix the skills gap in manufacturing, which has been the sector’s Achille’s heel for decades.”
This package builds on the Prime Minister’s commitment earlier this month during London Tech Week to a £187 m package to bring digital skills and learning into classrooms and communities and a new industry partnership to upskill 7.5 m workers with essential AI skills by 2030.
The Prime Minister is expected to launch the UK’s modern Industrial Strategy – government’s 10-year plan for national renewal – tomorrow. The modern Industrial Strategy will make it quicker, easier and cheaper to do business in the UK, giving businesses the confidence to invest and create good, well-paid jobs in thriving industries – delivering on this government’s Plan for Change. Later this week the Government will also launch its new Trade Strategy, which will set out how it will break down trade barriers, turbocharge exports and transform supply chains to make the UK the best-connected country in the world to do business.
21 Jun 25. Germany to hire 11,000 more military personnel this year, Bild reports. The German government will provide funds for an extra 11,000 military personnel by the end of the year, an increase of around 4%, tabloid Bild reported on Saturday, citing government sources. The money will be provided for 10,000 soldiers and 1,000 civilian employees for the military by end-2025, the newspaper said, adding the move was part of this year’s budget planning to be approved by the cabinet next week. The new jobs will cover armed, air, naval and cyber forces, the report said. Germany’s Defence Ministry declined to comment. Germany needs up to 60,000 additional troops under new NATO targets for weapons and personnel, Defence Minister Boris Pistorius said earlier this month, as the alliance beefs up its forces to respond to what it sees as an increased threat from Russia. (Source: Reuters)
23 Jun 25. Spain has sealed a deal with Nato allowing Spain to opt out from a requirement to increase its defence spending to 5 per cent of GDP, the target demanded by US President Donald Trump. (Source: FT.com)
23 Jun 25. The Secretary of State for the Department for Business and Trade announced that £6.6bn of new capital is being committed by the British Business Bank to boost growth, marking a major step change in financing to support smaller businesses to start and scale in the UK. A new £4bn initiative, British Business Bank Industrial Strategy Growth Capital, will be invested through the Bank’s existing capabilities across the eight growth-driving sectors – advanced manufacturing, clean energy industries, creative industries, defence, digital and technologies, financial services, life sciences, and professional and business services – crowding in another c.£12bn of private capital. British Business Bank Industrial Strategy Growth Capital will therefore deliver around £16.0bn of capital to invest in smaller businesses and innovation across the eight Industrial Strategy sectors over the next four years. As part of the Spending Review settlement, the British Business Bank will also be committing £2.6bn of capital to support entrepreneurs wherever and whoever they are to access capital, driving the growth of smaller businesses across the UK’s Nations and regions, including high-growth innovation clusters across the country. This follows the recent announcement at the Spending Review of the increase in the British Business Bank’s total financial capacity to £25.6bn, which will enable a two-thirds increase in investments to around £2.5bn each year. This investment is expected to crowd in tens of bns of pounds of additional private capital and will support the most innovative UK businesses to access the capital they need to start, scale and stay in the UK. Also confirmed were reforms to the British Business Bank’s governance and financial arrangements which will be implemented by the end of this financial year. These will place the Bank in a position to successfully deliver the increased level of investment activity and will mean the Bank has a newly permanent and more fungible capital base, with greater flexibility to re-invest returns over the long term to increase growth and prosperity across the UK. This £16.0bn of permanent capital[1], which will be invested through economic cycles, will help underpin investment and confidence in the UK’s growth and innovation economy.
Louis Taylor, CEO, British Business Bank, said: “We welcome today’s announcement by the Secretary of State to deliver British Business Bank Industrial Strategy Growth Capital, as well as the reforms to the Bank’s governance and financial framework. Using our market expertise and reach, we have a critical role to play in supporting smaller businesses in the eight growth-driving sectors to grow and stay in the UK.
“To deliver the government’s growth mission it is also critical that our most promising entrepreneurs can access the finance they need to grow their businesses, no matter what their background or where they are located across the Nations and regions of the UK.
“This is a strong endorsement of the Bank’s 10-year track record, market access and capabilities, including our position as the largest investor in UK venture and venture growth capital funds and the most active late-stage investor in UK life sciences and deeptech.”
Backing innovation as part of the UK’s modern Industrial Strategy
The new £4bn modern Industrial Strategy capital initiative will include more flexible and customised approaches to the market to tailor support to the needs of each sector.
The British Business Bank Industrial Strategy Growth Capital will:
- Tackle the scale-up financing gap for priority sectors by investing greater amounts in companies through our direct investments, leading future investment rounds and making strategic large investments of up to £60m in UK companies that are at the forefront of driving innovation and growth.
- Build a long-term funding ecosystem by cornerstoning specialist venture capital funds investing in modern Industrial Strategy sectors and doubling our support for emerging fund managers.
- Work with industry to actively develop new products and solutions to support priority sectors and subsectors, for example by making early-stage direct investments into UK AI companies in areas of high potential with a view to keeping them in the UK longer term, or creating new specialist debt funds to leverage private investment into supply chains of priority sectors.
These measures are expected to deliver around £30bn of additional Gross Value Add (GVA) to the UK economy through incremental company growth over the life of the investments.
Unlocking potential for UK entrepreneurs, regardless of their background or where they are located
The British Business Bank is committing £2.6bn of capital to help drive the growth of smaller businesses across the UK’s Nations and regions. Some of the measures that this will include are:
- Launching two new Nations and Regions Investment Funds, totalling £350m, in the East and South East of England: these funds will address regional finance gaps outside traditional hotspots by bringing targeted equity and debt finance to growing businesses and supporting innovation clusters.
- Strengthening regional innovation through additional targeted £100m investment into the existing Nations and Regions Investment Funds and embedding dedicated Cluster Champions, using the Bank’s expertise and investment capital to help businesses grow. Individuals with deep expertise and local knowledge will help strengthen financial networks and connect high-potential firms in the eight Industrial Strategy sectors to investors within ten clusters working with Innovate UK: Greater Manchester, West Yorkshire, the West Midlands, Liverpool City Region, South Yorkshire, North East, West of England, Glasgow City Region, Cardiff Capital Region, and Belfast City Region.
- Expanding the British Business Bank’s Regional Angels Programme: helping reduce regional imbalances in access to early stage equity and support for smaller UK businesses.
- Expanding diverse angel networks through new Angel Syndicate Support and Embracing Diversity programmes: these will deliver operational support to angel syndicates focused on bringing in more underrepresented angel investors to back early-stage companies, while helping to ensure that founders from all backgrounds have access to the capital they need to grow.
- Creating a more inclusive investment ecosystem with a new Investor Pathway Capital programme: this initiative will support diverse and emerging fund managers across the economy and make it easier for new entrants, particularly those from underrepresented groups, to break into the venture capital space. Other small business finance initiatives will be announced next month as part of the government’s Small Business Strategy.
20 Jun 25. EIB Group increases 2025 financing ceiling to record €100bn to step up investments in security and defence, energy grids and Europe’s tech leadership
- The 27 Member States endorse plan to increase new financing to record of up to €100bn in 2025.
- Revised ceiling includes 3.5% of total financing for European security and defence. EIB Board also approves landmark project for construction of military base in Lithuania.
- EIB Group shareholders launch largest EU programme to fund Europe’s technological leadership and approve first wave of new instruments to support cleantech.
- EIF Board approves deal with German Export Credit Agency to provide a pan-European guarantee for companies trading with Ukraine.
The shareholders of the European Investment Bank (EIB) Group, the EU Member States, approved a record-high financing ceiling of €100 bn for this year and new programmes to strengthen Europe’s competitiveness, technological leadership and security. The EIB Board of Governors, made up of European Union Finance Ministers, endorsed the 2025 financing ceiling at a meeting today in Luxembourg. The Boards of Directors of the EIB and of the European Investment Fund (EIF) gave the green light earlier this week to the increase in financing for security and defence, energy grids and the new TechEU programme to boost Europe’s technological leadership. They also approved flagship projects including to support Ukraine’s economy and the construction of a major military base in Lithuania.
“The unanimous support of our shareholders, the 27 Member States, for our proposals to provide record financing for defence, energy security and tech leadership, shows the key role of the EIB Group to support Europe’s strategic priorities,” said EIB Group President Nadia Calviño. “In a world where everything everywhere is changing all at once, the EU is a beacon of clarity, confidence and stability.”
The EIB Group’s new 2025 financing ceiling of €100bn follows a mid-year review of the organisation’s operational plan, which includes an increase to 3.5% of total financing for the European security and defence sector, record financing of more than €11 bn for power grids and storage in Europe, and greater support for EU technological and industrial innovation.
TechEU programme
The EIB Group is launching the EU’s largest financing programme to date in support of innovation and tech leadership to attract talent, capital and investment in Europe. TechEU will provide €70bn in EIB Group equity, quasi-equity, loans and guarantees in 2025-2027 and crowd in private capital to generate at least €250bn in investments. TechEU is complementing the “Startup and Scaleup Strategy” of the European Commission to support higher risk projects and innovative companies throughout their investment journey. TechEU provides more support for supercomputing, artificial intelligence, digital infrastructure, critical raw materials, green industries such as offshore wind, health, security and defence technologies, robotics and advanced materials. It will target innovative companies at every stage of their development – from initial ideas to stock listings.
Clean Industrial Deal
The EIB Board has also approved the first wave of instruments under TechEU to support Europe’s leadership in cleantech, in line with the EU Clean Industrial Deal, including the reinforcement of cross guarantees for wind energy production, and three new instruments to strengthen Europe’s competitiveness:
- A €1.5bn package to provide counter-guarantees through partner banks to grid component manufacturers to ensure sustainable supply, giving companies greater certainty to ramp up production of electricity networks across Europe. This will facilitate the integration of renewable energy into the grid and the delivery of affordable power to EU businesses and households.
- To help ensure predictable and affordable energy costs for businesses and accelerate investments in green energy, the EIB and European Commission are launching a €500 m pilot programme to support the take-up of more corporate power purchase agreements (PPAs). The EIB will counter-guarantee, through partner banks, part of the PPAs undertaken by mid-sized as well as larger energy-intensive companies for the long-term purchase of electricity generation from clean sources.
- To provide liquidity and working capital for highly innovative small and medium-sized enterprises active in developing green technologies, the EIB and Commission are launching a €250 m CleantechEU guarantee scheme.
- A €1.5bn top-up to a successful EIB programme supporting European wind turbine and component manufacturers.
New chairs
Czech Finance Minister Zbyněk Stanjura will take over as new chair of the Board of Governors for one year with immediate effect.
“The EIB has a key role in supporting European priorities from defence to energy security or affordable housing,” said Czech Finance Minister Zbyněk Stanjura. “I am delighted to take over the chair of the Board of Governors. I look forward to working closely with President Calviño and other EU Finance Ministers to support the EIB, as it steps up its activities to help tackle the many challenges Europe is facing.”
“The EIB has impressively demonstrated its ability to support European objectives in an increasingly complex geopolitical environment and to effectively fulfil its increasing responsibilities in support of security and defence, green and digital transitions and economic growth in Europe, while safeguarding bank’s operational and financial position,” said Bulgarian Finance Minister Temenuzhka Petkova, who chaired the Board of Governors during the past 12 months. “I would like to express my appreciation to President Calviño, the institution and send my best wishes to the new chair, my dear colleague Zbyněk Stanjura.”
The Board of Governors also welcomed Katja Pluto as new chair of the Audit Committee, succeeding Nuno Gracias Fernandes. In addition, the Audit Committee presented its annual report.
Energy security, defence and global partnerships
Before the Board of Governors, this week’s EIB and EIF Boards of Directors approved new operations totalling €12.8 bn to strengthen Europe’s defence capabilities, competitiveness, energy security and partnerships worldwide. This includes initiatives under the EIB Group Clean Industrial Deal package and support for the development in Lithuania of the Rūdninkai military base, for the German Bundeswehr brigade, a key project to enhance North Atlantic Treaty Organization (NATO) operations and regional security. The EIB Board approved three solar photovoltaic plants in Romania, water infrastructure in Ireland and the Netherlands, electricity grids in Germany and education facilities in Finland. In addition, the EIB is strengthening Europe’s global partnerships by backing renewable energy in Colombia, sustainable waterway transport in Nigeria and water sanitation services in Tanzania. The European Investment Fund (EIF) Board approved a guarantee transaction with the German national export credit agency to strengthen support for German companies exporting to Ukraine, as well as two guarantee transactions with Ukrainian banks to improve access to finance for more than 1,500 Ukrainian businesses. This follows the first signature in May with the Danish Export Credit Agency to provide a pan-European guarantee for companies exporting to Ukraine. In addition, the EIF approved investments in four infrastructure funds that will support greenfield data centres, wireless and fibre investments, decarbonization of the shipping sector, sustainable mobility, and student housing. Statements around the EIB Board of Governors will be available on EBS.
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Founded in 1987, Exensor Technology is a world leading supplier of Networked Unattended Ground Sensor (UGS) Systems providing tailored sensor solutions to customers all over the world. From our Headquarters in Lund Sweden, our centre of expertise in Network Communications at Communications Research Lab in Kalmar Sweden and our Production site outside of Basingstoke UK, we design, develop and produce latest state of the art rugged UGS solutions at the highest quality to meet the most stringent demands of our customers. Our systems are in operation and used in a wide number of Military as well as Homeland Security applications worldwide. The modular nature of the system ensures any external sensor can be integrated, providing the user with a fully meshed “silent” network capable of self-healing. Exensor Technology will continue to lead the field in UGS technology, provide our customers with excellent customer service and a bespoke package able to meet every need.
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