More countries are boosting their defense industries, calling for a shift to “war economy mode.” But what exactly is a war economy?
Last March, Thierry Breton, the EU’s commissioner for internal market, advocated for a shift of the European defense industry toward a war economy.
Europe is facing an “existential threat,” he said, as the Commission announced a new defense strategic plan, with a minimum of â¬1.5 billion ($1.6 billion) subsidy to boost the continent’s war machine.
Nations are investing in their armed forces too.
In Germany, arms maker Rheinmetall inaugurated a new factory in February that will produce artillery ammunition, explosives and rockets.
Aerospace and defense company Kongsberg also opened a new anti-ship and cruise missile manufacturing plant in Norway last June.
According to the Stockholm International Peace Research Institute, military expenditure reached a peak of $2.4 trillion in 2023, the highest year-on-year rise since 2009.
Watch the video above to learn more about the economics of war.Â
Source Agencies
