The EU’s desire to increase military spending could undermine the bloc’s financial stability if European countries fail to curb budget deficits and public debt levels, Danish Economy Minister Stephanie Lose said on Monday.
Lose said that increased defence spending could pose an additional risk to the bloc’s economy, which is already suffering from the double impact of US tariffs and fierce competition from China.
“At a time when economies around the world are unstable, we need to increase defence spending very quickly,” Lose claimed.
“This is a risk factor for our economies because if we do not combine this with wise decisions to ensure the sustainability of public finances, I believe it will become a problem,” she also added.
Lose’s comments came after NATO members last month pledged to increase military spending to 3.5% of GDP by 2035, nearly double the alliance’s previous target of 2%. The military bloc also agreed to allocate up to 1.5% of GDP to protect critical infrastructure.
