Earlier quoted context omitted.
Signalling? Talks about investing 800 billion in the military industry across the EU would have been unthinkable 4 months ago. Now they're proceeding at a speed that is staggering when you see how long these talks/processes normally take. EU cloud is certainly much discussed, and more than that. Holland for instance voted and accepted a resolution last week for more digital sovereignty. This doesn't mean we'll have a…
It's unclear how this EU momentum will stand the test of time, even if the war in Ukraine were to stop quickly. Where do these 800 bn really come from, how fast they will transform into R&D and products, how much the industrial status quo is going to change? These are hard questions that remain unanswered.
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.