MNI BRIEF: EU Defence Needs To Rise EUR250bn Annually- Bruegel
MNI (BRUSSELS) - EU defence spending will need to rise by around EUR250 billion a year to around 3.5% of GDP in order to deter any threat of a Russian land invasion, according to a report from the Bruegel think tank.
The report says that such an increase in spending may have the advantage of boosting economic activity at a time when external demand could be hit by the fallout from a trade war with the U.S., although it also warns of a rise in inflation short term. (See MNI: EU Eyes National Escape Clauses To Boost Defence Spending)
The increase in spending could be split between EU and national funding, the report said, "facilitating both substantial joint procurement and substantial national military expenditure". Those states spending more of their own national funds on defence would receive enhanced access to any EU joint defence pot, it said.