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It's unclear how this EU momentum will stand the test of time, even if the war in Ukraine were to stop quickly.

Where do these 800 bn really come from, how fast they will transform into R&D and products, how much the industrial status quo is going to change? These are hard questions that remain unanswered.




> It's unclear how this EU momentum will stand the test of time, even if the war in Ukraine were to stop quickly.

I don’t think it really is unclear. The war in Ukraine served as an initial trigger that did spark some notesble changes. But the trump administration even more so. Ask the former UdSSR and Warsaw pact states. They were sounding the alarm bells for a long time and don’t appear to be willing to take any chances going forward.

> Where do these 800 bn really come from,

Government deficit.

> how fast they will transform into R&D and products

R&D is not really the issue. While there are some notable exceptions, the European defense industry has lots of very capable system that match or exceed the capabilities of US counterparts. The problem is primarily production capacity.

And production capacity is a problem that is relatively easily solved by throwing money at it and committing to long term purchases.

The main risk is that states want to ensure that if they want to spend more, they also get proportionally more. With production capacity being a bottleneck, increased spending could lead to inflationary pricing.


> Ask the former UdSSR and Warsaw pact states.

With the inexplicable exception of Hungary.


>Government deficit.

And where does that come from? Obviously, it should come from the people of the country or its natural resources.

But we don't like to say that, do we?


It comes from the future production of the countries, the exact thing the spending is meant to boost.

If the 800bn creates more than 800bn in (time-adjusted) future productivity, it pays for itself. If not, it was a bad investment.


>the exact thing the spending is meant to boost.

Sure, but that is 800bn that could have been spent on more meaningful things. People would be more happy to redeem that by their work..


> But we don't like to say that, do we?

Because it not true. The only body emitting currency is a government


a currency is backed by value generated by the people and the natural resources of a country.


I think the momentum doesn't come from the Ukraine war. It comes from the US going back on NATO article 5, declaring any promise of mutual defense dubious at best. And it comes from the US threatening NATO allies such as Canada and Denmark (to which Greenland belongs) with invasion.

When you treat your closest allies like that, you instantly become untrustworthy. And you will remain untrustworthy far longer than Trump can stay in office, be it with the current terms or some Putin-like term extensions.

Also, the 800bn are a huge bunch of money that politicians would have never gotten otherwise. Now they have it an can spend it on their military-industrial-cronies. They won't let that opportunity go to waste, even if the reason were gone.




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