With the… “rifle” she calls her government Germany (but also all the governments of the European Union) to get on the market for the finding of capital from the private sector, the Central Bank of the country, Bundesbank in order to increase the financing of social security and defense.
And this despite the public investment – especially in defense and infrastructure – that the German Parliament has voted first and best in the context of March 2025’s constitutional reform. Speaking to a Bundesbank conference, Vice President Sabine Mauder Mauder (Sabine Mauder). openly, saying that “Whatever the political answers” In relation to questions concerning the support of defense, the elderly and the business, “One thing always needs, and even a lot: money!”.
And where will the “lots of money” be found? The Bundesbank Vice President makes it clear that “the Siu (SIU) Association plays a key role. European capital markets must cooperate and facilitate cross -border investment. But high people’s savings could also be channeled into productive investment. “
However, the preparation of the above process is proceeding slowly, so-as it seems-every EU member state moves on its own…
Fund investments in defense groups?
Mauderr pointed out that ‘The German government is currently considering how part of the pension system can be funded (ed. from the capital market. This is an important step towards sustainable pensions. Would be an important step toward a capital market for all ».
Newsit.gr information by capital market executives reports that there are many insurance funds in the EU invested in defense industries, and thus an increase in the rate of reserves invested in capital markets could lead – and – to increase investment in defense, and more than the defense investments.
However, such a practice (that is, the investment of reserves of reserves in defense industry companies) is not followed, “for the time being” in Greece, according to the same sources, although the law enables investments up to 25% of EFKA reserves etc in financial securities. Currently, AEDAK and Eden have invested close to 20% of reserves, ie 4 billion euros, and could invest up to € 5 billion, while there are no thoughts and increased rates above 25%, according to newsit.gr. At the same time The Auxiliary Capitalization Fund (TEKA) has not yet proceeded to form a defined investment product to date.
In addition, according to valid sources of Newsit.gr, proposals have been submitted (unacceptable) to the financial staff, according to which part of the reserves of the insurance funds, that is, the Solidarity of Solidarity Insurance Capital (AKAGE) could be a fund, However, not much, money could possibly head for investment in the Greek defense industry.
What does the Commission say about ESG capital investment in war industry
Immediately afterwards, the Vice President of the Bundesbank goes to the issue of additional defense funding and says that “the expansion of defense capabilities is therefore not only a necessity of security policy but also economic. Only those who are financially strong can be defended. And only those who are able to defend themselves can also be economically strong. “
She added that “In this context, the question arises as to how defense capabilities can be funded. This includes the question of whether ESG funds can be made, especially in the light of the changing geopolitical situation. “
The issue of investment from ESG funds or corporate social responsibility in the defense industry has also occupied the Commission.
According to a recent Bloomberg report, the Commission is taking steps to ensure that regulations aimed at supporting sustainable investment do not clash with EU efforts to channel funds to its defense industry.
According to the same sources, the European Union’s executive body said it was willing to “help prevent any unjustified discrimination” against the defense sector in investment decisions, according to an internal document seen by Bloomberg.
The instructions apply to various sets of regulations that make up the framework of sustainable investment, including the Directive on Corporate Sustainability, according to the same report.
As Europe’s tensions with Russia are escalating, the idea of what should include ESG (environmental, social and governance) quickly evolves, with security emerging as a key goal. The release of ESG money has a significant impact, as the European ESG capital industry – far the largest in the world – is based on assets of about 9 trillion. dollars, according to Bloomberg Intelligence.
The Commission said it wishes to support a “better understanding and recognition” of the “ability of the defense sector to contribute to social viability” and also clarified that the EU’s sustainable funding framework “does not set limits” in the areas where ESG can be channeled.
“The Commission encourages exploitation bodies not to treat defense as a de facto non -contributor sector” in determining industries that can have a “positive contribution to sustainability,” he said.