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The European Investment Bank is lending €20 million to Sweden’s ECAPS to scale next-generation, non-toxic propulsion systems for space and defense. The investment, EIB’s first for a Swedish space company, advances Europe’s dual-use capabilities, strengthens supply chain resilience, and accelerates critical mobility technologies across space and emerging domains.

Europe’s ambitious defense surge hinges on innovative financing, €150 billion SAFE loans, fiscal flexibility, and EIB support, but challenges remain in execution, industrial capacity, and political alignment. This analysis explores the financial-industrial strategy, risks, and lessons for Asia-Pacific observers.