The Globe and Mail reports in its Thursday, March 20, edition that European leaders are preparing to invest hundreds of billions in their armies, citing the need to ensure security in a world where the U.S. may not provide it. A New York Times dispatch to The Globe reports that additionally, they hope this spending will revitalize the struggling industrial sector and spur economic growth. This link between defence investment and competitiveness will likely be a key topic during their upcoming meeting in Brussels, following the European Commission's release of a paper on the future of European defence.
Ursula von der Leyen, president of the European Commission, calls the potential investments a "powerful tailwind for important industries."
However, whether that will be the case is far from certain, and the challenges to Europe actually making it happen are enormous. Despite the challenges of buying local, many economists believe European growth will benefit from the defence buildup. Goldman Sachs projected a modest increase in eurozone growth over the next three years, peaking in 2027, partly due to Germany's plan to ease debt limits. However, some experts have moderated their expectations.
© 2025 Canjex Publishing Ltd. All rights reserved.