EU Bank to Fund German Army Base in Lithuania?

EU Bank to Fund German Army Base in Lithuania?

Lithuanian Government Seeks EIB Funding for German Army Base

The Lithuanian government has requested financial assistance from the European Investment Bank (EIB) to fund the construction of a new army base for the German-led NATO brigade, which is set to be permanently stationed in the Baltic region. According to EIB President Nadia Calviño, the project is “very important and very demanding” and the bank is now reviewing the details.

By 2027, a brigade of around 5,000 soldiers is expected to be stationed in Lithuania, serving as a deterrent to Russia. While the German military estimates the costs to be over €10 billion, the Lithuanian government plans to allocate over €1 billion for the new base in Rudninkai, near the border with Belarus.

Additionally, Lithuania is responsible for building schools and kindergartens for the children of German soldiers, as the country has been a NATO member since 2004. The EIB is the world’s largest funding bank, with a record €89 billion in financing signed in 2024, with €1 billion allocated to the security and defense sector.

“We expect a further doubling by 2025” Calviño said in an interview. The EIB can fund projects that are both militarily and civically useful, such as the deepening of ports or the modernization of roads, bridges and railways to improve military mobility.

Calviño, who attended the Munich Security Conference and previously served as Spain’s Vice-Prime Minister, emphasizes the need for the EU to focus on its strengths, stand up for its interests and defend the rule-based world order that has benefited the region over the past 80 years. She acknowledges the shift in the global geopolitical order and urges EU member states to present a united front in the face of this new reality.