Financing EU defense following unprecedented paths: What role for the EIB and EU budget

What is the project about?

Russia’s war in Ukraine, coupled with shifts in NATO/EU roles heightened defence needs. EU defense is still mainly nationally funded, while EU financial tools (EIB, EU budget, off-budget instruments) are evolving in a fragmented way. Hence, a lack of a clear legal and constitutional framework for these innovative forms of defense financing emerges. This research project aims at exploring the financing profiles of the EU defense, with a particular focus on the changing role of the European Investment Bank and the EU budget. 

  • Given the shift in EU strategic priorities, is there a duty for the EIB to support defense-related investments, and what would this imply for the Bank’s functioning?

  • How is the EU budget and the EU borrowing capacity being reshaped to accommodate defense spending?

  • What are the constitutional and governance implications of this new financial apparatus in security and defense?

The project will adopt a law-in-context methodology, gathering doctrinal legal analysis, case studies, political economy, and institutional analysis. 

Dr. Rosalba Famà, Bocconi University (Principal Investigator), Prof. Eleanor Spaventa, Bocconi University (Bocconi Supervisor).

Project outcomes

The main outputs, selected publications and events related to the project.

Publications

Commentaries

Working Papers

  • R. Famà, ‘The EU as a borrower: reconnecting the debate between the Economic and Monetary Union and the EU budget’, 50 (5) European Law Review, 2025.
  • R. Famà, ‘Beyond ‘Fit for 55’: The emergence of the ‘Do no significant harm’ principle in EU law and EU funding mechanisms’ (1) Review of European, Comparative & International Environmental Law, 2025, 1-14. Open Access.
  • R. Famà, ‘Il bilancio europeo post-pandemia: tra novità e frizioni’, in Sileoni (ed) What’s next after next. Il lascito del NGEU nelle politiche fiscali e nel funzionamento delle istituzioni europee, (Quaderni della Ricerca 29, Suor Orsola Benincasa Università Editrice 2025, pp. 91-120). Open Access.
  • R. Famà, ‘Financing an EU defence: what role for the EU budget?’ Op-ed EU Law Live, 3 April 2025.
  • R. Famà, ‘REPowerEU’, in Fabbrini and Petit (eds) Research Handbook on Post-pandemic EU Economic Governance and NGEU Law, (Edward Elgar 2024) 128-143.

Events

  • “A new European Competitiveness Fund – Prospects” at “En Route to an EU budgetary Overhaul - The Next MFF”, Salzburg University, 1 - 2 December 2025.
  • “The finances of the EU and the Economic and Monetary Union in times of geopolitical shift” European Monetary and Economic Law (EMEL) Guest Lecture, Università degli Studi di Milano, 17 November 2025.
  • “The EU ‘speaking the language of power’: towards a defense union?” at Villa Vigoni Autumn School in European Studies 2025, “Multilateralism in the Post-Global World. Nations, Politics and International Relations” Villa Vigoni, Lake Como, 29 October 2025.
  • “La politica di coesione 2.0: tra nuove priorità strategiche e il declino della dimensione territoriale” at AISDUE Annual Conference, Convegno Annuale Associazione Italiana Studiosi Diritto Europeo, Turin 24-25 October 2025.
  • “Il programma ReArm EU: quale ruolo per il bilancio europeo?” at ICONs Italy, University of Cagliari, 3 October 2025.
European Investment Bank
The project is funded by a grant under the STAREBEI - Programme for Financing University Research of the European Investment Bank

Any errors remain those of the authors. The findings, interpretations and conclusions presented are entirely those of the authors and should not be attributed in any manner to the European Investment Bank.

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Famà Rosalba

Rosalba Famà

PostDoc Fellow
Rosalba Famà is a lawyer and holds a PhD in legal studies from Bocconi University summa cum laude (2025). She is currently a postdoctoral researcher IEP@Bocconi. Her research interests regard the constitutional profiles of the European Union budget, ...