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MNI BRIEF: EU Defence Boost To Have Substantial Outlook Impact

The EU's defence announcements this week will have a substantial impact on the economic outlook, a senior official says.

MNI (LONDON) - Increased defence spending and investment will have "a significant and substantial effect on the economic outlook" of the EU, a senior European official said today, but added that this is so far hard to quantify. 

Turning to the bond markets' reaction to Germany and the EU's defence spending announcements this week, the official said that it was probably not due to financial stability concerns, but could be better explained by the fact "this looks like it is going to be a sizeable fiscal impulse. It will increase growth and demand and will affect the policy mix..."

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MNI (LONDON) - Increased defence spending and investment will have "a significant and substantial effect on the economic outlook" of the EU, a senior European official said today, but added that this is so far hard to quantify. 

Turning to the bond markets' reaction to Germany and the EU's defence spending announcements this week, the official said that it was probably not due to financial stability concerns, but could be better explained by the fact "this looks like it is going to be a sizeable fiscal impulse. It will increase growth and demand and will affect the policy mix..."

Keep reading...Show less