America has left Europe - an economic opportunity arises

America has left Europe - an economic opportunity arises

in 2025 Europe has so far been struggling with considerable challenges. The risk of a war on the continent is classified as the highest in history, while the US economy further deviates from the European. These developments raise the question of whether the planned increase in defense spending in Europe in the region could give the region an urgently needed economic upswing, so that Europeans become safer and wealthier.

The effects of defense spending on the economy

Whether this increase actually brings positive effects depends on where the money comes from - whether from taxes or by borrowing - and how the money is used - for imported weapons or for innovative, local technologies such as the life -saving three-point belt .

"An increase in defense expenditure could significantly strengthen the economic growth and industrial basis of Europe if the expenditure on state -of -the -art, regionally produced armaments," explained the Kiel Institute, a German Economic Science Research Institute.

Europe's defense strategies

The European countries are increasingly facing the unimaginable view of having to defend themselves in a possible future conflict without the support of the United States. This was recently highlighted by US Defense Minister Pete Hegseth, who asked Europe to take responsibility for his own security. The United States remains a committed partner of NATO, but emphasized that it can no longer tolerate an unbalanced relationship that promotes dependency.

The US withdrawal from Europe takes place against the background of the three -year conflict in Ukraine, directly at the door of the European Union. "The risk of a war on the European continent, within the European Union, has never been so high," said French Foreign Minister Jean-Noël Barrot.

economic growth and defense investments

The EU economy, which, with 27 member states, is the second largest in the world, grew by only 0.9 % last year, while there was a growth of 2.8 % in the United States. In order to counteract these challenges, a special EU summit that is planned for this week could help to pay more attention to military issues and support for Ukraine.

According to Roberto Cingolani, the CEO of Leonardo, a leading European armaments company, the urgency is currently greater than ever. "There is the impression that we need continental solutions," he noted.

technological innovations through defense spending

Mario Draghi, a former President of the European Central Bank, referred to the numerous innovations that have historically emerged from the defense sector, including the Internet, GPS and modern satellite images.

The challenges and opportunities for Europe

The establishment of a robust defense industry will take time, which is why Europe will continue to be dependent on imports. In the meantime, however, incentives could be created by incorporating local companies into armaments production that produces products for both military and civil applications.

A change from 2 % to 3.5 % of GDP defense expenditure could be estimated to increase European economic output by around 1 %. However, this advantage will not occur if the higher expenses are financed by tax increases instead of borrowing.

conclusion: a waiting approach

This topic is still closely observed by economic experts and political actors in order to gain valuable knowledge and solutions for the challenges of today and tomorrow.