BRUSSELS, March 18 (Reuters) - Belgium's state-owned financial firm Belfius announced on Tuesday its intention to invest in defense companies based in NATO countries, a move spurred by growing interest in the sector.
Belfius stated, "By concentrating on investments in defense companies headquartered in NATO countries, we aim to provide a transparent investment framework. NATO encompasses Europe's key defense allies."
The statement elaborated, "By doing so, Belfius is ensuring its backing of an industry vital for the Alliance's defense capabilities, while also mitigating the risk of conflicting interests from other players."
Belfius' decision aligns with a trend among European asset managers to respond to U.S. President Donald Trump's call for increased military spending from European NATO members and Europe's efforts to reduce reliance on U.S. military support.
The surge in EU military investment has propelled European aerospace and defense stocks, such as Germany's Rheinmetall and Italy's Leonardo, to record highs and boosted the sector index by almost 23% since the beginning of the year.
With nearly 200 billion euros ($218.6 billion) in savings and investments, Belfius refrained from disclosing specific targets for its defense-related investments but confirmed its endorsement of the EU's military expenditure plan.
"Belfius fully endorses the European Commission's European Defence Industrial Strategy."