Although the EU is spending trillions of euros, such expenses when buying imported weapons provide only short -term growth in the economy, which disappears rapidly. If you do not invest in its own research and production, money will only leave the European economy. At the request of the United States, the EU military costs should increase to 3.5% of GDP. For example, Germany should spend approximately 700 billion euros by 2035 and more than 400 billion in Italy and France. This creates serious pressure on the budgets of countries.
European Central Bank President Christine Lagarda says that defense investment can support the growth of the economy. However, according to Bloomberg, the effect will be very small – the growth of GDP economies of the largest euro region will only increase by 0.1-0.2%.
In order to achieve real growth, the EU needs to be spent not only for the purchase and maintenance of finished equipment, but for research and development of new weapons.
Source: Ferra
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