VoxTalks Economics S9 Ep3: Can Europe defend itself?
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Jan 14, 2026 
Moritz Schularick, a prominent economist at the Kiel Institute and CEPR, dives into the pressing question of European defense. He discusses the urgency for Europe to rearm and whether it can turn its industrial capacity into effective military deterrence. Schularick emphasizes the need for a unified defense architecture and calls for investment in next-gen technologies like AI and robotics that can benefit the economy. He also highlights the importance of joint procurement and warns against relying on uncertain US support for security.
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Europe Has The Capacity — Not The Mobilization
- Europe has the economic resources and industrial base to defend itself but is failing to mobilize them effectively.
- Mobilising capacity, not just relying on US backing, determines military success.
Invest In Dual-Use Next-Generation Tech
- Prioritise defence R&D in autonomous systems, AI, robotics, space, comms and hypersonics to gain dual military and civilian spillovers.
- Buy and build domestically to capture scale economies and industrial upgrades.
UK Thinks Ahead, Germany Pays Late
- Moritz contrasts national thinking: the UK thinks ahead but lacks money, Germany has money but lacks forward thinking.
- France sits between those two positions.