Defence and strategic resilience

Strategic resilience is reshaping financing needs

The current environment has clearly changed the way we look at resilience. What used to sit mainly at policy level is now translating into real financing needs and investment decisions.

Across Europe, sectors such as energy, infrastructure, logistics and cybersecurity are becoming more strategic. This also includes parts of the defence industry, which are increasingly seen as critical to Europe’s broader economic and security framework.

These projects tend to be long-term, often cross-border, and come with a level of complexity that requires more than standard financing approaches.

The evolving role of banks

In that context, the role of banks is evolving. It is not just about providing capital, but also about helping to structure transactions, bringing together different stakeholders and ensuring that risks are properly allocated.

These types of projects also often rely on some form of public support, whether through guarantees, partnerships or blended finance, with the aim of making them viable at scale.

Balancing strategic priorities and ESG considerations

At the same time, there is a growing need to balance these developments with ESG considerations. This is not always straightforward and requires a pragmatic approach.

Why Luxembourg?

From a Luxembourg perspective, the financial centre offers a strong platform for organising and coordinating these types of financing, particularly given its experience with cross-border structures and international investors.

This is reinforced by strong coordination across the ecosystem, with organisations such as the ABBL fostering dialogue between banks, public authorities and investors to support the financing of strategic priorities.