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Economic principles for European rearmament

In: The Economic Consequences of The Second Trump Administration: A Preliminary Assessment

Author

Listed:
  • Quinet, Alain
  • Jaravel, Xavier
  • Schularick, Moritz
  • Zettelmeyer, Jeromin

Abstract

• We present five guiding principles for European rearmament. Europe's rearmament should be (i) innovation-driven to support European technological capabilities, competitiveness, and productivity growth; (ii) aim for a rapid increase in production capacities for a high-low mix of military capabilities; (iii) rely on quantitative goalpost for R&D expenditures and an unmanned autonomous systems; (iv) build on independent European capabilities alongside NATO to reduce dependence on increasingly unreliable American assets; (v) substantially increase military support for Ukraine as the cost-efficient way towards European security in the short-run. • The central steps are the creation of a European defense single market, the reduction of national fragmentation, and the development of joint European defense capabilities.
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • Quinet, Alain & Jaravel, Xavier & Schularick, Moritz & Zettelmeyer, Jeromin, 2025. "Economic principles for European rearmament," CEPR Press Book Chapters, in: Gensler, Gary & Johnson, Simon & Panizza, Ugo & Weder di Mauro, Beatrice (ed.), The Economic Consequences of The Second Trump Administration: A Preliminary Assessment, edition 1, volume 1, chapter 32, Centre for Economic Policy Research.
  • Handle: RePEc:cpr:ebchap:p394-32
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    Cited by:

    1. is not listed on IDEAS
    2. Carril, Rodrigo, 2026. "Effizienz in der Verteidigungsbeschaffung: Best Practices für Europas Sicherheit," Kiel Reports 6, Kiel Institute for the World Economy.
    3. Jean, Sebastian & Méjean, Isabelle & Schularick, Moritz, 2025. "Guidelines for a European economic policy towards China," Kiel Policy Briefs 197, Kiel Institute for the World Economy.

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