Following the March European Council Summit, the EU and member states seem poised to double down on defence spending in response to both the Russian threat and Trump’s reluctance to uphold US security guarantees. This has been met by concerns over increased militarisation of the Union, a new wave of inflation – driven by public spending in defence – and downsizing of investments in civilian projects directly linked to sustainability and competitiveness. Arguably, such a stark opposition does not necessarily match reality.
First of all, defence spending is a response to the Kremlin’s geopolitical aspirations towards Ukraine and beyond. Ignoring the Russian threat can make it come true, and if so, other agendas become less relevant. Moreover, defence spending can help to pursue other EU priorities. For example, the EU and member states can define criteria for defence-related public investment in, and procurement of, sustainable equipment and services of European origin. This can in return create a demand for decarbonised products (e.g. green steel) via secure supply chains and help revive European industry facing a fierce global competition that lacks a level playing field. If directed towards the EU’s underdeveloped regions, defence spending can enable access to stable high earning jobs which can help reduce populist tendencies that thrive in poverty and absence of dignity.
In other words, it is important to consider how the current momentum behind defence spending can be leveraged to overcome the political and institutional bottlenecks plaguing the Union and help advance sustainability, competitiveness and liberal order in Europe.
The support the European Policy Centre receives for its ongoing operations, or specifically for its publications, does not constitute an endorsement of their contents, which reflect the views of the authors only. Supporters and partners cannot be held responsible for any use that may be made of the information contained therein.
