Moves by Germany and across Europe to boost defence spending could give a significant uplift to the region’s beleaguered chemical industry.
- Need to maintain robust national or regional supply chains may benefit chemical industry in Europe, which is threatened with closures
- German defence/infrastructure spending boost could be 2% of GDP, larger than increase linked to German reunification, post-war Marshall Plan
- Rising defence spending in Europe would help boost electricity demand significantly, estimates vary from 7%-30%
- Data-driven technology for defence would also raise electricity demand
- Will raise demand for gas and renewable-based power
- Europe will need to become more self-sufficient in energy, driven by renewables
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