By Alban Kacher
(Reuters) -Euronext will deploy a series of measures aimed at supporting Europe’s strategic autonomy, including easing the mechanisms for financing defence firms, the pan-European stock exchange group said on Tuesday.
“European aerospace and defence companies have expressed the urgent need to invest heavily in their innovation and production capacities to guarantee Europe’s strategic autonomy for the next decade,” it said in a statement.
To support the significant growth in the defence sector’s financing needs, Euronext plans to launch a “European Aerospace and Defence Growth Hub”, bringing together investors and company executives that seek funding, by the end of 2025.
It will also support initial public offerings in the sector through its new IPOready Defence programme, to be launched in the third quarter, which will benefit from EU funding, and a specific European defence bonds segment with accelerated listing procedures.
These initiatives are part of a broader strategy to support Europe’s strategic autonomy, focusing on what group CEO Stéphane Boujnah called the “New ESG: Energy, Security, Geostrategy”.
For each of these three pillars, Euronext will launch a dedicated index to increase the sectors’ visibility and channel investments.
Boujnah had announced the group’s intention to launch these indices during the group’s annual conference in March.
Tuesday’s announcements align with a broader geopolitical shift as Europe strives to ramp up military spending in response to U.S. pressure and policy shifts.
European Commission President Ursula von der Leyen said in March that the European Union could mobilize up to 800 billion euros ($905.5 billion) to strengthen the continent’s defence industry, along with incentives for investments in the sector.
($1 = 0.8835 euros)
(Reporting by Alban Kacher in Gdansk, editing by Milla Nissi-Prussak)
