The cost of security: The impact of higher defence spending on debt-laden nations
By Robert Burrows - 10 March 2025
In an era of rising geopolitical tensions, many nations are ramping up defence spending to bolster security. However, for countries already burdened with high debt, this creates a fiscal dilemma: how to fund military expansion without worsening financial instability. Nowhere is this debate more pressing than in Europe, where Germany—historically the continent’s fiscal anchor, undertook a historic change to its fiscal policy.