➀ The European Commission plans to increase defence spending as part of its ReArm Europe plan, aiming to create €650 billion in additional spending capability over four years;

➁ An increase from 2% to 3.5% of GDP in defence spending could cost around €300 billion annually, but could also stimulate economic growth;

➂ Ilsetzki’s analysis suggests this increase could lead to 0.9 to 1.5% GDP growth, which is welcomed considering the bloc’s 0.9% GDP growth in 2024.