Economic principles for European rearmament

Alain Quinet, Xavier Jaravel, Moritz Schularick and Jeromin Zettelmeyer

No 195, Kiel Policy Briefs from Kiel Institute for the World Economy

Abstract: • We present five guiding principles for European rearmament. Europe's rearmament should be (i) innovation-driven to support European technological capabilities, competitiveness, and productivity growth; (ii) aim for a rapid increase in production capacities for a high-low mix of military capabilities; (iii) rely on quantitative goalpost for R&D expenditures and an unmanned autonomous systems; (iv) build on independent European capabilities alongside NATO to reduce dependence on increasingly unreliable American assets; (v) substantially increase military support for Ukraine as the cost-efficient way towards European security in the short-run. • The central steps are the creation of a European defense single market, the reduction of national fragmentation, and the development of joint European defense capabilities.

Keywords: Europe; defense; single market; procurement; Europa; Verteidigung; Gemeinsamer Markt; Beschaffung (search for similar items in EconPapers)
Date: 2025
New Economics Papers: this item is included in nep-cis, nep-eec, nep-mac and nep-tra
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:zbw:ifwkpb:328252

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