What are the economics of conflict?

Final March, Thierry Breton, the EU’s commissioner for inner market, advocated for a shift of the European protection business towards a conflict financial system.

Europe is dealing with an “existential menace,” he stated, because the Fee introduced a brand new protection strategic plan, with a minimal of €1.5 billion ($1.6 billion) subsidy to spice up the continent’s conflict machine.

Nations are investing of their armed forces too.

In Germany, arms maker Rheinmetall inaugurated a brand new manufacturing facility in February that may produce artillery ammunition, explosives and rockets.

Aerospace and protection firm Kongsberg additionally opened a brand new anti-ship and cruise missile manufacturing plant in Norway final June.

In line with the Stockholm Worldwide Peace Analysis Institute, navy expenditure reached a peak of $2.4 trillion in 2023, the best year-on-year rise since 2009.

Watch the video above to be taught extra concerning the economics of conflict.