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The RHOMOLO macroeconomic impact assessment of the European Defence Fund 2021-2027

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  • Casas, Pablo
  • Christou, Tryfonas
  • García Rodríguez, Abián
  • Lazarou, Nicholas Joseph
  • Salotti, Simone

Abstract

This paper presents a macroeconomic impact assessment of the European Defence Fund (EDF) expenditure planned for the programming period 2021-2027. The analysis is carried out with the spatial dynamic computable general equilibrium model called RHOMOLO. According to this analysis, EDF investments can generate significant economic returns in terms of Gross Domestic Product (GDP) and employment. These economic benefits are long-lasting and are still significant ten years after the end of the programme, thanks to the productivity gains resulting from the R&D activities financed by the policy. Impact assessments such as the one presented here allow for continuous policy adjustment and ensure informed decision-making by evaluating potential economic outcomes, thereby increasing transparency and accountability to EU citizens and Member States.

Suggested Citation

  • Casas, Pablo & Christou, Tryfonas & García Rodríguez, Abián & Lazarou, Nicholas Joseph & Salotti, Simone, 2025. "The RHOMOLO macroeconomic impact assessment of the European Defence Fund 2021-2027," MPRA Paper 125039, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:125039
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    Keywords

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    JEL classification:

    • C68 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computable General Equilibrium Models
    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)

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