Weapons and wealth: Market reaction to Europe’s defense push

Nicola Comincioli, Michael Donadelli and Massimiliano Rizzati

Economics Letters, 2025, vol. 255, issue C

Abstract: This paper analyzes abnormal returns around the EU’s Readiness 2030 defense initiative. Defense stocks saw strong positive returns, especially pre-announcement, while high-tech firms showed weak or negative returns—indicating no spillover effect to the tech sector and underscoring the role of industry classification in market reactions.

Keywords: Readiness 2030; Stock market; Defense and high-tech industry; Event study (search for similar items in EconPapers)
JEL-codes: G14 H56 O38 (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolet:v:255:y:2025:i:c:s0165176525003751

DOI: 10.1016/j.econlet.2025.112538

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