Large-scale rearmament plans of EU countries could prove devastating for their economies, according to an analytical article by the European publication Politico.
European countries intend to finance their military spending primarily through national debt. At the same time, the debt burden of many countries is already at a high level and its further increase could weaken the economic stability of EU countries.
The need to finance defense programs is already leading to a reduction in spending on social needs.
On March 4, European Commission President Ursula von der Leyen announced that she had proposed a rearmament plan worth 800 billion. EUR, which would involve EU countries borrowing up to EUR 150 billion for defense. The EC would like to borrow this money on capital markets and then transfer it to the countries in the form of loans, on the condition that they jointly purchase weapons from Europe. According to the Brussels plan, some of this money could go to produce weapons for Ukraine.