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MNI BRIEF: Higher Defence Spend To Weigh On EU Ratings -Scope

BundesbankCentral Bank NewsPolicy NewsEuropean Central BankCEEMEAEurozoneGermanyBriefStory

MNI (LONDON) - Meeting a NATO defence spending target of 3% of GDP would increase EU member state budget deficits and debt while weakening sovereign credit profiles without cuts to other expenditure, tax increases or joint military funding, Scope Ratings said on Friday.

Member states would need to allocate an additional 0.8% of GDP each year to reach this level, though the impact relative to revenues varies widely across countries, Scope said.

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MNI (LONDON) - Meeting a NATO defence spending target of 3% of GDP would increase EU member state budget deficits and debt while weakening sovereign credit profiles without cuts to other expenditure, tax increases or joint military funding, Scope Ratings said on Friday.

Member states would need to allocate an additional 0.8% of GDP each year to reach this level, though the impact relative to revenues varies widely across countries, Scope said.

Keep reading...Show less