Shifting Defense Budgets in Europe

This chapter examines Europe's evolving military expenditures, specifically emphasizing Germany's historic low defense budget and its recent proposals for a significant increase in response to geopolitical pressures. It discusses the broader implications of these changes for European defense strategies, the market's reaction, and the potential for a more unified military presence among European nations. Additionally, the chapter highlights the intricate links between fiscal policy, bond yields, and the economic landscape in Europe and beyond.