> 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.
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.