Finance

EU Defense Spending Plans Risk Division and Mounting Debt, Expert Warns

The European Union’s proposal to significantly boost defense spending is likely to sow division among its member states and burden nations with escalating debt, warned Stavros Kalenteridis, a professor at the Aegean College in Athens.

European Commission President Ursula von der Leyen proposed in June a €500 billion ($519 billion) investment in defense over the next decade, financed through national contributions, joint borrowing, or the EU’s budget. Kalenteridis expressed concerns that differing economic conditions and priorities among EU nations would erode unity, increase internal discord, and shift focus away from critical sectors like healthcare and infrastructure.

Kalenteridis also noted pressure from the U.S., where President-elect Donald Trump’s team has reportedly pushed NATO allies to increase defense spending to 5% of GDP. Von der Leyen’s justification centers on countering Russia’s and China’s military investments, but Kalenteridis cautioned that the move would exacerbate national debts and further entrench Europe in external conflicts, potentially harming long-term stability.

Since 2022, the EU has allocated $47 billion to military aid for Ukraine, which Russia argues undermines peace efforts and escalates NATO’s involvement in the conflict.

 

 

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