European budget deficit of 56 billion to reach NATO defense standards

According to the findings of the latest research conducted by the Institute for Economic Research at the University of Munich (IFO), the European countries that are members of the North Atlantic Treaty (NATO) face an annual budget deficit of 56 billion euros in order to reach the level of defense standards set. /p>

According to the Financial Times, based on the results of this research, many European Union countries, including Belgium, Spain and Italy, which have the highest level of debt and budget deficit among European countries, also have the most shortages and problems regarding allocation. They also face the defense budget intended by NATO.

This research determined that among European countries, in 2023, Germany is at the top of the list of European countries with a deficit of 14 billion euros, which is facing difficulties in providing the defense budget set by NATO. Spain with a deficit of 11 billion euros, Italy with a deficit of 10 billion and 800 million euros and Belgium with a deficit of 4 billion and 600 million euros are respectively in the next ranks of the countries with the largest deficit in 2023 in allocating the budget intended by NATO They were facing their defense.

According to the results of this research, countries with high debt levels and high interest rates do not have much opportunity to increase their debt, so their only real way is to reduce spending in other areas.

According to several news sources close to the German government, apparently the country’s authorities have decided to reduce the funds available in their 100 billion euro special fund for military expenses.

The aforementioned fund was established by the German government in response to the war between Russia and Ukraine to finance the country’s military expenses, including the purchase of fighter jets to rebuild the army.

A spokesperson of the German Ministry of Defense has not denied this report and says that the government has already planned to spend part of the money of this fund in civilian ways.

It is said that the German Ministry of Defense has spent 33 billion euros of this fund’s capital so far, and it is supposed to spend two thirds of the fund’s money on military equipment.

Germany plans to meet NATO’s goal of allocating 2 percent of GDP to military spending by 2024. Meanwhile, a news source close to the German government said that Berlin has implicitly withdrawn from the implementation of this goal.

Source: IRNA