Study: Europe Defense Spending to Boost Economy

EY and Deka-Bank report that increased European defense spending could create 4.4 million jobs and boost production by 822 billion euros.

A study by EY and Deka-Bank states Europe must increase defense spending over the next decade. European NATO states plan to allocate 3.5 percent of GDP to direct defense and 1.5 percent to security investments like cyber security and transport infrastructure. These investments, totaling 320 billion euros, are projected to generate 822 billion euros in production and 4.4 million jobs. In Austria, EY partner Axel Preiss estimates an annual requirement of 7.5 billion euros, potentially creating 75,000 jobs and a 17 billion euro production increase. DekaBank's Matthias Danne stated that resilience requires private capital, proposing public-private partnerships for dual-use infrastructure in energy, logistics, and communication.