“This $ 100 billion is a good thing, but given Russia’s invasion of Ukraine and a turning point in Europe’s defense, it’s not enough in the long run,” says the ifon researcher. Florian Dorn.
He adds that a nominal increase in the defense budget of 7.2 percent in 2022 will almost completely eat up the expected inflation. Even in the most pessimistic economic scenario, this year’s defense budget, measured in terms of GDP, will be lower than last year. Dorn also says: “The era of the peace dividend, when defense savings provided financial opportunities for other political projects, is by no means enough to fully address the funding gap of recent years, close all gaps in the short term and reorganize the Bundeswehr sustainably. more efficient structures should be created, after all, it is not just about spending more money – it is about spending money efficiently.
“Relatively low defense spending and a correspondingly modest number of European defense agreements mean that the national defense industry needs to work more closely together if we want to maintain technology autonomy and security policy autonomy,” says the ifon researcher. Marcel Schlepper. Since 1992, Europe, and Germany in particular, has experienced intensive disarmament. By 2020, Germany had reduced the number of its tanks by 88 percent and the number of fighters and combat helicopters by 78 percent. Even if Germany, France and the United Kingdom combined their tanks, they would be five times more than the Chinese and eight, respectively. As for fighters and combat helicopters, Russia would have twice as many, China three times as many. Europe is dependent on security guarantees from the United States. But just as the United States has done, China and Russia are also developing complex technological innovations, such as secret jets and supersonic missiles for large-scale armed forces.
Source: ifo Institute
Source: The Nordic Page