ИКОНОМИЧЕСКИ ЕФЕКТИ НА РАЗХОДИТЕ ЗА ОТБРАНА В ЕС

Abstract

Defense spending in the EU has economic effects on economic growth, employment, tax revenues, public debt and fiscal policy, innovation and R&D. Increased defense spending can stimulate economic growth by creating jobs and boosting demand in related industries, such as manufacturing and technology. Investments in defense often lead to advancements in technology and innovation, which can have spillover effects on the broader economy. Defense contracts and procurement projects create employment opportunities, particularly in high-tech and skilled labor sectors. Higher defense spending can lead to increased tax revenues due to the economic activities it generates. Conversely, cuts in defense spending can result in a decrease in GDP and tax revenues, as well as job losses. Financing increased defense spending can be challenging, especially in countries with high public debt and tax burdens. Governments may need to reallocate funds from other areas or increase taxes, which can have broader economic implications. Defense spending often includes significant investments in research and development, leading to technological advancements that benefit other sectors. The impact of defense investments on R&D and long-term GDP growth is often greater than that of other forms of public spending. Overall, while defense spending can drive economic growth and innovation, it also presents challenges related to fiscal policy and public debt management. Balancing these factors is crucial for sustainable economic development in the EU.