Archive: https://archive.is/2025.03.08-050706/https://www.ft.com/content/76937db3-0b3b-44d4-9005-9709512acd53
A proposed €150bn injection into the EU’s defence industry has become a new flashpoint in a long-standing battle between France and Germany over the continent’s rearmament drive and whether it should include countries outside the bloc.
Spooked by US President Donald Trump’s threats to end generations of American protection, Europe has pledged to increase defence spending dramatically and scale up their domestic capabilities that have withered since the cold war.
Last week the European Commission proposed to raise €150bn that would be lent to capitals to boost their military production. While the broad idea has received unanimous political backing, the details are still being fleshed out, with heavy lobbying over whether the cash could be spent on arms made outside the bloc.
Tanks made in the same lines of production than trucks, military aircrafts made in the same lines than civil ones, … When the need of new military equipment is reduced the lines can balance to more civil production. And then be prepared in case we need more military equipment.
That’s my hope but that’s assuming there will be demand and Germany can become competitive again. Right now those industries are failing because of expensive energy and that’s not about to change. In fact, it might get worse because Europe is getting LNG from the US now, and they’re not exactly friendly.