About this work
Europe’s defense spending ambitions create different fiscal challenges across its largest economies. Germany expands military and infrastructure investment, while France and Italy face heavier debt constraints. Spain has more flexibility but competing social priorities. The March 2025 analysis examines how additional borrowing could raise financing costs and test fiscal stability.
Cite this work
Marcello Estevão, Jonathan Fortun (2025). Global Macro Views: Full Metal Budget: Europe’s Military Spending Blitz. Institute of International Finance.