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Reading: How European countries plan to fund defense efforts
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Home » Blog » How European countries plan to fund defense efforts
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How European countries plan to fund defense efforts

Henry Blake
Henry Blake
1 year ago
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King Frederik X or Denmark examines the visit of military teams to the headquarters of Nexter Systems, a subsidiary of the German French defense group Knds, in Versailles, on April 2, 2025.
King Frederik X or Denmark examines the visit of military teams to the headquarters of Nexter Systems, a subsidiary of the German French defense group Knds, in Versailles, on April 2, 2025. Kiran Ridley / AFP

Borrow? Reduce spending? Collect rates? European governments are exploring all the ways to finance the increase in the expected military spending in the coming years, driven by dual pressures of Russian threat and the American leave. While some have already established budgetary objectives and identified possible sources of financing, not everyone has reached that point. In other countries, the debate, which just begins with respect to an effort that will inevitably tension other priorities.

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Decisions are likely to be less challenging within governments that have balanced public finances and moderate debt. PineWith a budget surplus, exemplifies this. On February 19, the Government, composed of social democrats, liberals and dressmakers (centrist), decided to increase the 3% defense budget of GDP by 2026, requiring 120 billion billion billion billion billion billion billion billion billion billion billion billion billion billion billion billion billion billion billion billion billion billion billon billion billion billion billion billion billion billion billion billion billion billion billion billion billion billion billion billion billion billion billion billion Billón billion billion billion billion billion billion billion billion billion billion billion to billion billion billion to billion billion billion billion. One billion billions). Financed by the budget surplus of 59 billion Kroner anticipated by the Ministry of Finance, thanks to the growth of the Danish economy. Loans are also being considered, with a public debt about 33% of GDP. However, the proposal faces criticism, especially from business leaders who advocate reduced public spending.

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