Can Europe’s new military spending help her economy?

In Berlin, Brussels, leaders in Europe are preparing to spend hundreds of billion dollars to reset their armies. The costs say Europe needs to be prepared for the threats of a world that does not guarantee the security of the United States.

However, many of them hope that the increase in money has another important effect: to revive the intersect industrial sector and open a new front to grow economic growth.

This The connection between defense investment And the competitiveness will be discussed when European leaders meet in Brussels on Thursday, after the European Commission, it is one of the subjects to be published in the future of European defense.

“Economic power and Europe’s reconstruction plan are two sides of the same coin,” Ursula Von Der Leien, President of the European Commission Recent speechCalls potential investments “a strong tail for important industry”.

However, it is very great to do, whether this will happen in a certain period of time and the difficulties in Europe.

There is a growing consensus that new military expenditures are likely to give a number of push on European economies in the near future, it will depend on how good the money is how good and where.

Most European economies have a relatively modest defense industry, although France and Germany will want to grow themselves. For decades, Europe, especially when it comes to the most advanced weapons, was significantly different in imports of American weapons and equipment. This continent is not particularly suitable for immediate absorption of new military spending.

However, European leaders are eager to control their security and change this to the best to reap the economic impact on these investments.

French President Emmanuel is pushing Macron, including Germany, including Germany, including French missile-defense systems instead of Americans. The Portuguese Defense Minister said Last week, the country can replace American F-35, but to replace Europe’s related aircraft related to Russia’s cuddling of Russia.

However, Europe will spend time by building modest military.

Friedrich Merz, Germany, is likely to have problems for MPs before the lower parliamentary house of Germany, Tuesday Voted to empty the constitutional constraints To allow more billions of billions of billions to spend again, to repeat the country’s military. Measures must be overcome from the top chamber and survive legal problems before the law is.

“Now, we must be rebuilt with a technological system of defense and purchasing strategies, which are a technological system of protection and all-modern defense systems, which are a partially managed defense and procurement strategy, part of the independent European satellite systems, and from all, before all, before all, before,” Mr. Merz.

European peoples spent on defense It’s about one year about 2021. However, even combined, annual military budgets remain less than half of the United States. ‘ The defense industry used a total of 600,000 Europeans to 600,000 last year. By comparison Car manufacturers worked more than 3 million.

In some cases, like tanks and missile batteries, Europe must build an existing industry or repeat other industrial production lines. In others – Drone technology and the most advanced weapons and military support equipment – Europe will have to quickly build its rivals to compete with American players. If defense officials are not ten years, it can take years to turn off.

When the European peoples approach home, there is a risk that will want to buy a local not from Germany or France. There are already some reserve problems in defense in Europe. Ukraine, for example, has been were at least sent 17 different types of buttons using the same type of bark.

In the absence of new Europe’s costs, both economic and strategic benefits may be silent.

Therefore, some economists may not be enough to build European governments against the populist retreat, which are likely to be encountered in recent years.

However, if the EU can add new industries with the coordinated investment and procurement, growth effects may be important.

European countries will not be enough to help reduce new technologies that will be poured into the decline and investing in the decline and investment, investing in the civilian sector.

Much depends on how new spending plans are playing.

Philosophy, at the moment, seems to be close to a great cost and home. Brussels, European Union officials, 27 members announced that they want to increase their production capabilities. They created a 150 billion euro credit program for investment catalysis.

In addition, European financial rules have also proposed to spend more than $ 710 billion in additional costs. In fact, the occurrence of a lot of spending will continue to take a hinge on whether national governments are ready to borrow more than military spending.

Even with local shopping problems, many economists believe that European growth as a whole can benefit a little from the building. Goldman Sachs, with the biggest benefit in 2027, each of the three years evaluated a modest shot in the eurozone in the eurozone.

Goldman economists increased growth calculations because he planned to facilitate German debt limits. But others disturb expectations.

The German military spending plan is “Really Security”, President of the IFO Institute in Munich, Mr. Merz advised Mr. Merz

“It’s good for the country to want to avoid the war in Europe,” Mr. Fuzest said in an interview. But he added: “Therefore, not good, ‘, more growth or something will be created.”

Again, German cars and their suppliers have been time to turn 46,000 jobs since 2019, can some Germans have time to turn car factories cut for advanced plants?

The German weapons producer Rheinmetall has already taken the role of lead in expanding the country’s weapons and production opportunities. Germany’s autopur suppliers, presented new jobs to dozens of employees from Continental AG. Negotiations were held with Volkswagen on the seizure of a factory that took place near the Osnabrück.

“If the German taxpayer’s money is spent, then it should create German work,” said Armin Papperger, Rheinmetall’s CEO, said he expected the journalists to add 10,000 jobs in the next two years.

This increase can be felt outside Germany. Since the start of the war in Ukraine, he has grown to a rheinmetall, Spain, Lithuania and Romania to one of the largest arms producers in the West and set up new factories.

According to Papperger, each new factory has 500 to 1000 new jobs, a few thousand new jobs around.

France has a limited room to borrow to increase its expenses, which can benefit from higher military spending in the rest of the region. This is hosting the largest servicemen in the EU and is an exporter of great weapons.

An economical advisor in the capital economy Vicky Redwood wrote March 13 analysis In general, 1 percent of military expenditures will increase by 1 percent of GDP growth to 0.5 percent. Outside of Germany, it is a “reasonable” assessment, the lift of the military spending of European peoples as a share of exits between 0.5 and 1.5 percent.

However, several factors can affect how much impact on military expenditures. These include how much research and development of the costs and how effective costs are made. Nothing is determined.

Increasing “others are smaller players,” said Marseill Fratzscher, President of the German Institute of Economic Research, Marsel Fratzscher. “For this, I have doubts that the comparative advantage of the comparative of Germany is to build tanks to build cars.”