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Policy Article

Economic Principles for European Rearmament

Authors

  • Quinet
  • A.
  • Jaravel
  • X.
  • Schularick
  • M.
  • Zettelmeyer
  • J.

Publication Date

Key Words

Europe

defense

single market

procurement

Related Topics

Germany

Europe

War

• 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.

Kiel Institute Expert

  • Prof. Dr. Moritz Schularick
    President

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Research Center

  • Macroeconomics