The European Defence Bond Label: Mobilising Private Capital in Support of the European Defence Sector

Recent geopolitical developments have catalysed a reordering of European defence policy. The European Union has initiated significant efforts to revitalise and consolidate its defence and security industrial base through the Permanent Structured Cooperation, the European Defence Fund, the Strategic Compass for Security and Defence, the European Defence Industrial Strategy and the proposed European Defence Industry Programme. Other developments, such as a multilateral “Defence, Security and Resilience Bank” are planned to assist NATO countries and their allies to finance their defence needs, including by accessing the international capital markets.

In an effort to mobilise private capital to support the European defence sector, Euronext, a pan-European stock exchange and market infrastructure provider, recently launched the "European Defence Bond Label".