L’aumento della spesa per la difesa potrebbe aumentare in modo significativo la crescita economica e la base industriale dell’Europa se mirati ad armamenti ad alta tecnologia e realizzati a livello regionale, secondo un nuovo studio

this isn’t a surprise to anyone, its basically wartime Keynesianism

more government spending on investment means more consumption and production in the economy

Russian economy is held afloat by increased defense spending as well, s**omething like 2/3 of GDP growth over the past year is due to growth in defense-related sectors( metalurgics for armament, chemical industry for the defense sector etc.)**

of course, there is a price to pay for that, namely higher inflation, especially when you go to the level of **Russia at like 7% of GDP defense spending**

but we are currently at barely 2% defense spending as % of GDP

but going from the current 2% to 3% would result in little additional inflation, while it would massively increase European security and help us arm Ukraine ,thus destroying more of Russia’s army

on the other side, increased production in the defense industry would increase GDP and revenues a little as well, so that would cancel some of the deficit related problems with government spending

for example , going from 2% to 3% defense spending as share of GDP would likely increase deficit by only 0.7% percentage points, because the additionally employed workers and additional production would pay taxes and generate revenues as well

going further than 3% would be more complicated, however

**i think 4 to 5% would have compounded inflationary effects as it would also crowd out qualified labor from other parts of the economy**

but until we haven’t reached 3% we shouldn’t even begin to worry about defense budget bloat

Why is it that we have to rely on weapons and drugs to keep the global economy afloat?

I think what also would be good for the Europ as a whole is Israel approach. Where after hightschool you go to the army, 3 years for men and 2 for women.
Build on that a buisness model that if you want to be a manager you would need a prof of beyond in the army. I think spending plus military service is a key.
Let the downvote start.

Yea no shit, though last time we did this it did wind up being followed by massive economic growth restoring all the ruins of a continent

am I the only person thinking “no shit sherlock”?

I’d much prefer investment in innovation in health and wellbeing but the world has gone war crazy.

Ultimately, Vance message is a call to arms. We need to stand up and become strong again and rebuilding our armies and creating a EU army is now an the single biggest priority.

In a multipolar world we can play a bigger role, especially of the Americans decide to exist stage left.

#Europe’s Military Spending Boom: A Path to Economic Growth?

European governments could significantly boost economic growth by increasing defence spending—if they invest wisely in home-grown military technology. That’s the argument put forward in a new report by the Kiel Institute, which suggests that shifting from imported weapons to European-made armaments could lift GDP by up to 1.5 percent a year. The study estimates that raising annual defence spending from NATO’s 2 percent benchmark to 3.5 percent of GDP could inject as much as 300 billion euros into the economy, provided the money is channelled into domestic industries.

Professor Ethan Ilzetzki of the London School of Economics, who authored the report, believes this could reshape the political debate on military funding. While many fear that higher defence spending inevitably comes at the cost of public services and private consumption, history suggests otherwise. Economic growth need not suffer, particularly if governments finance additional spending through borrowing rather than immediate tax hikes. The benefits could be even greater during economic downturns, when defence investments often stimulate broader industrial activity.

Europe’s renewed focus on defence comes amid heightened security concerns following Russia’s full-scale invasion of Ukraine. Military budgets have already risen, but many nations still hover just below NATO’s target. Calls for more spending have grown louder, with NATO Secretary General Mark Rutte reminding leaders that Europe invested over 3 percent of GDP in defence during the Cold War, and former US President Donald Trump urging allies to push even higher, to 5 percent.

The key, according to the report, is ensuring that the economic benefits of military spending stay within Europe. At present, around 80 percent of EU defence procurement comes from outside the bloc, mainly the US. Investing in European-made military technology could drive innovation, strengthen the industrial base, and create jobs, generating long-term productivity gains beyond the immediate fiscal boost. The US already spends 16 percent of its military budget on research and development, ten times the EU’s share. Increasing Europe’s defence R&D could deliver major technological advances with spillover benefits for the wider economy.

The study also argues that greater military coordination at an EU level would maximise efficiency. A Europe-wide procurement strategy could stimulate competition, prevent duplication, and help smaller defence firms develop technologies with civilian applications. If executed well, this approach could turn Europe’s defence needs into a powerful engine for economic growth.

Professor Ilzetzki will present the findings at the Munich Security Conference, where they are likely to add fuel to the growing debate over Europe’s military future. As tensions persist and security concerns mount, the continent may have little choice but to spend more on defence. The question now is whether it can do so in a way that strengthens not just its armies, but its economy as well.

Replace US IT first. It’s a doable thing which will return billions.
Can’t Europeans use their social and trade networks if Zuck and Bezos f. off?
Can’t Europeans survive without iPhones? Those who need them must pay 200% tariff

That is only true if Europe actually develops it’s own industry instead of buying from US. There are politicians in Brussels like von der Leyen who appear to be traitors and ok with Europe’s vassalisation to US. We need more leaders like Macron, and get rid of the likes of von der Leyen or Mark Rutte.

Who is gonna build all those regional armament factories? How long will that take? And who will work in them? As long as this is unsure Europe will just buy stuff from suppliers outside EU.

If this happens then we need to block all American equipment purchases, buy European

Hell yeah. Eat European steel MF.