Julien Malizard publishes an article in the latest issue of magazine Defence & Industry, published by Foundation for Strategic Research (FRS).
Title «Increased defence spending in Europe: from rhetoric to budgetary reality».», This article follows on from Julien Malizard's article in the Webinar organised by the FRS on 22 May on «Rearming Europe: budgetary and capability issues».».
Two main points are addressed:
- The specific features of european defence spending. The reasons for the cyclical nature of European spending are different from those in other regions of the world. In particular, in Europe, the weight of budgetary constraints (budgetary rules on public debt or public deficit) plays a major role.
- Le Sharp rebound since 2014, This is not the case for all European countries. Russia's invasion of Crimea in 2014 created new defence needs, and proximity to the Russian border is a major determinant of developments within Europe: the countries closest to it have increased their defence budgets the most.
In conclusion, a number of challenges lie ahead While Europeans' ambitions remain very high in view of the situation in Ukraine, budgetary room for manoeuvre is shrinking with direct interest rate rises introduced to combat inflation.
