Security demands cast new shadow on Europe’s finances

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London: European leaders have long known that the region is beyond its aging, stable economy sources. The question is whether the knives created by Donald Trump’s second White House mean that they will do something about it.

Less than a month after the president’s oath -taking, the continent’s tough US ally announced that it had been paid to maintain peace in Europe. “No one will be allowed to convert Uncle Sam into ‘Uncle Socker’,” said Trump, Secretary Defense Pet Hegsith.

But if Europe should now shoulder the cost of its defense – at a time when Russia is fighting with Ukraine over its eastern parts – which threatens to separate the budget that already welfare The states are struggling to provide funds that are often seen. The world’s jealousy.

“We will face difficult days, complicated decisions and even sacrifices that we are not expecting so far, French Foreign Minister Jean Novel Beirut told the Munich Security Conference on Saturday. Make sure. “

However, some people fear political reaction if governments reduce social costs to buy more soldiers and guns. “Then we will have the division of our society and will only benefit us from the Munich meeting,” German Defense Minister Boris Pistorius told the Munich meeting.

An option for Europe may be to expect Trump’s departure within a four -year period that the translanic bond will be restored. But the temperament of the Munich gathering suggested that European leaders finally accept that the US axis is far from its continent – which indicated Barack Obama in terms of low confrontation a decade ago – its That means they have to step now.

“As a political leader, our most important task is to protect our people,” said Denmark’s Prime Minister Matt Frederickson. “Two percent is not enough for NATO members to spend a break in national production,” he said, “two percent is not enough.” Thirty -three of NATO members met the target last year after the recent increase.

More borrowed?

So where can Europe get the money?

Subsequently, two social agreements were established on the idea that European residents would pay more taxes for solid welfare safety, health supply and pension in return. Include that labor contracts have less work in weeks and long holidays.

Many voters already feel that their governments have renewed the deal – and has abandoned the mainstream parties in favor of the fundamentalists who are on a high ride on dissatisfaction. The challenge that Trump faces takes the political and economic stake to a whole new level.

It is difficult to put a number on how much it will cost to secure peace and rebuild Ukraine: Due to Trump’s desire to deal with Russian President Vladimir Putin, Trump’s desire is not known.

However, if EU countries doubled defense spending at levels that were a feature of the Cold War, the national budget is easy to estimate the cost. The rating firm S&P is a global estimate that they will cost $ 875 billion a year to get 5.0 % defense spending of GDP, or “individual states like such costs without any costs. Without financial support or possibly pressure on the importance of their reputation. “

But other people say that Europe, which included new funds in the current budget to collect the 2-trial euro stimulation package, can find the money if it wants. Although its output is about 120 % of the national debt in the United States and runs an annual loss of order of 6.0 %, the average loan in the European Union is close to about 81 81.5 % of GDP, with a deficit of 2.9 %. .

In a comment for the Financial Times last week, former European Central Bank Chief Mario Dragie estimates that since 2009, the United States has lodged a loss of five times more in its economy than the euro zone countries Used – 14 trillion euros vs. 2.5 trillion.

LBBW Bank Chief Economist and earlier S&P Global Chief Rating Officer, Morts Kreer, noted that the euro does not have a dollar as the world’s reserve currency and therefore “sustainable loan. The level is low “.

But others suspect that the markets will be frightened if a country tries to get extra loans to meet the need for security with Germany or the Netherlands. “Many European Union countries can afford to borrow more public debt,” said Zusolt Darwas, a senior colleague of European Economics Think Tank Burjeel. “The problem is a political will.”

A German election

This is the political will that is about to experience.

The European Commission’s Chief Arsola Van Dare Leene told the Munich Conference that she would support “escape clauses” to free national spending on defense of EU rules for deficit caps. He will need help from the national governments.

Although the European Union is banned from using its 1.2-trial euro budget to buy weapons, some suggest that the European Union nations and non-EU allies such as NATO ally, such as British and Norwegian members Funds can create a “Reverse Bank”. In the markets

Former Finnish Premier Sanna Maran said such actions would mean that the leaders would agree to the urgent need for the growing defense of their people-especially in these countries than their own country or Eastern European Union states. The Russians will be out of danger.