Europe is planning investments in armament. Lobbyists in Brussels have already increased budgets and European stocks unusually turn their backs on America.
Emmanuel Macron, Friedrich Merz as well as Petr Fiala talk about the need to strengthen the security architecture in Europe. This primarily means increasing the budgets of the armies of individual states. However, more and more a common European solution is coming into play. This is also reacted to by lobbyists from arms companies, who have fundamentally increased the budgets of their teams focused on supporting their business directly at the headquarters of the European Union.
With the outbreak of the conflict in Ukraine, European security policy began to change fundamentally. Until then, most European states mainly relied on membership in the North Atlantic Alliance and military spending was rather downplayed, the largest conflict in Europe since the Second World War changed the approach of many political representations.
The hasty policy of the new American president Donald Trump, who long criticizes NATO and is currently focusing on warming relations with Russia, which the alliance considers the biggest security threat, caused another acceleration.
This American administration is indifferent to the fate of Europe, Merz stated
The fundamental turnaround can be seen primarily in Germany. The country is completely changing its basic doctrine of limited armament as a result of two world wars sparked by the Germans themselves. The new government wants to open up money streams for armament. It is the only large country in the EU that has very small deficits and can afford extensive investments without economic issues.
"My absolute priority will be to strengthen Europe as quickly as possible so we can step by step truly achieve independence from the USA. I never thought I would have to say such a thing in a television show. But no later than Donald Trump's statements last week, it is clear that the Americans, at least this part of the Americans, this administration, are largely indifferent to the fate of Europe,"
quoted the winner of the recent elections in Germany, Friedrich Merz, on the Politico server.
In Germany, it is crucial how Merz's effort to change the constitutionally anchored debt brake will turn out, for which not only his CDU/CSU, socialists, who are preparing to form a government coalition with him, must vote, but also the green MPs. Pro-Russian oriented parties of the Bundestag like AfD and Die Linke will certainly not support him in this effort.
"The Europe of defense, which we have been promoting for 8 years, is thus becoming a reality,"
declared Emmanuel Macron at X. The French president has long talked about a joint European army and now his German opponent in this regard is becoming an ally. Merz also signed up for the French nuclear umbrella, opening the door to deeper cooperation between the two hegemons of the European Union.
The words of politicians are confirmed by financial markets and the arms lobby
"The international order is undergoing the biggest change since the fall of communism. If we want others to take Europe seriously, we must put weapons and money on the table. We are not just talking, but are now taking action. The government has decided that from next year defense spending will be increased by 0.2% of GDP annually until 2030 to a total level of 3% of GDP. This decision is also an opportunity for the Czech economy and research. Every crown invested in defense can bring up to three crowns to the Czech economy,"
The Czech Prime Minister Petr Fiala also commented in accordance with the political trends on X and reminded of the economic potential of these investments.
The phenomenon has already been noticed by the private sector. While political statements often remain strong only on a rhetorical level, financial markets respond unequivocally to the new reality. The euro reacts to the armament plans by strengthening and the German market index DAX responds to the government's investment plans with frantic growth, attributing up to 4% value in one day. On the other hand, the American market reacts to Donald Trump's policy with a turnaround from positive expectations to a slump due to the unstable approach of the American president regarding tariffs and geopolitics.
An unusual activity at the headquarters of the European Union was recorded by the Politico server. Among the numerous lobbyists present in Brussels, the teams of arms companies began to strengthen significantly. Better regulation was traditionally advocated here by car industry specialists (from the Czech Republic, for example, representatives of Škoda and Hyundai), and arms dealers typically focused on national political representations.
Recent statements by Ursula von der Leyen regarding defense investments from cohesion funds and debt brake approvals suggest that the increase in arms lobby investment in Brussels is not accidental. For example, Swedish SAAB doubled the budget of its lobbyists (according to Politico's findings to 800,000 Euros) and the size of the team. The company manufactures and services aircraft such as Jas 39 Grippen, which has been a showcase of the Czech army so far.
Sources: author's text, Politico, X, Patria, Voxpot
