forecast

Europe Faces Existential Crisis From Defense Spending

Europe faces an existential crisis as it must remilitarize after free-riding on US defense, but with real interest rates no longer at zero and already-very-high taxes that hold back investment, countries like France will have to make spending choices they have long avoided, and Europe has very few tech or finance world-beaters to fall back on.

forecastpending

Speaker

Kenneth Rogoff

Evidence Quote

No, I think this is absolutely an existential crisis here. It may lead to them becoming more cohesive. It may lead to them becoming more of a geopolitical power, but yes, they’re going to have to make choices which they haven’t had to make.

Source

Kenneth RogoffConversations with Tyler
Created: 6/13/2026, 3:28:48 AM

My Notes

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