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Defence Spending in the European Union

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  • Alessandra Cepparulo
  • Paolo Pasimeni

Abstract

After more than 60 years of peace, Europe faced a watershed moment in its security, in February 2022. Following a brief overview of how years of underinvestment and fragmentation have left many weaknesses in EU defence, this study analyses the evolution of the EU defence strategy, the contribution by the EU budget and by national budgets. Finally, the paper investigates to what extent the recent increase of defence spending can have a positive effect on growth, by examining the link between defence spending and economic growth, on the basis of the existing literature.

Suggested Citation

  • Alessandra Cepparulo & Paolo Pasimeni, 2024. "Defence Spending in the European Union," European Economy - Discussion Papers 199, Directorate General Economic and Financial Affairs (DG ECFIN), European Commission.
    • Handle: RePEc:euf:dispap:199
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    File URL: https://economy-finance.ec.europa.eu/publications/defence-spending-european-union_en
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    JEL classification:

    • H56 - Public Economics - - National Government Expenditures and Related Policies - - - National Security and War
    • H77 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Intergovernmental Relations; Federalism
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General

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