O VOO DO CORVO

Yes, there is a widespread consensus among European leaders, military experts, and institutions like the European Commission and NATO that Europe has historically underinvested in defense, particularly following the end of the Cold War. This situation is now changing rapidly in response to the war in Ukraine and a changing global security landscape.

 

Key Points on European Defense Investment

Historical Underinvestment: For decades after the Cold War, many European NATO members significantly reduced their defense budgets, creating a "peace dividend" which was often reallocated to other sectors like welfare states. Average EU defense spending as a share of GDP fell to around 1.6%, well below the 2% NATO target.

Current Spending Increases: In recent years, and especially since 2022, European defense spending has surged. European NATO countries' spending increased significantly, and the EU is actively seeking ways to further boost funding.

Capability Gaps: Despite increased spending, Europe faces significant capability gaps across almost the entire threat spectrum, lacking adequate volumes of air defense, ammunition stocks, and heavy equipment. The military industrial base is under strain, and a highly fragmented market has led to inefficiencies.

Dependence on the US: Europe remains highly dependent on the US for its defense capabilities and equipment, with nearly two-thirds of its equipment purchases coming from outside the EU in the recent past.

New Targets and Initiatives: In response to these challenges, Europe is implementing several key actions:

Increased Spending Targets: NATO members have formally adopted a goal to increase spending, with some Baltic nations aiming for 5% of GDP.

EU-level Coordination: The EU has unveiled plans like the "White Paper for European Defence – Readiness 2030" and the "ReArm Europe" plan, which proposes a €150 billion loan instrument to encourage joint procurement and close critical capability gaps.

Mobilizing Investment: Efforts are underway to mobilize private capital and create new financial mechanisms, such as potentially issuing common EU defense bonds, to ensure the defense industry is not solely reliant on public funding.

In summary, the consensus is that past investment was insufficient, but the trend has reversed, with significant funds now being directed towards closing these gaps and building a more credible and self-sufficient European defense.