Economist Podcasts Apocalypse soon? Britain ups its defence
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Jun 3, 2025 
Josh Roberts, Capital Markets correspondent at The Economist, and Sophie Petter, the Paris bureau chief, delve into Britain’s bold but underfunded new defense strategy amid rising security threats. They discuss waning investor confidence in government bonds as a safe haven. Additionally, there's a surprising surge in adult baptisms in France, influenced by the quest for community following the pandemic. This conversation touches on national security challenges and societal shifts in faith.
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Britain's Bold Defence Shakeup
- The new Strategic Defence Review aims to prepare Britain for war-fighting readiness against significant threats like Russia.
- However, the financial commitment is uncertain, risking the delivery of these ambitious defence plans.
US Debt Shakes Safe Haven Status
- High US government borrowing and inflation fears challenge the view of US treasury bonds as a safe haven.
- This global uncertainty raises borrowing costs worldwide and may lead governments to reduce deficits or increase taxes.
Rising Government Borrowing Costs Risks
- Governments pay more interest as borrowing costs rise, motivating shifts to shorter-term bonds and increasing refinancing risks.
- Long-term borrowing during low-rate periods could minimize current interest expenses.