What’s holding back European defence and how can governments respond?

Since the end of the Cold War, Europe has enjoyed a ‘peace dividend’ driven by a reduced perception of military threat. Recent developments — including Russia’s invasion of Ukraine — have fundamentally altered this landscape. Europe now faces a hostile military power on its eastern border, while questions remain over the long-term durability of US security guarantees.

In response, defence spending has risen sharply across the continent. Frontline states in Eastern Europe have seen the largest increases, but nearly all European countries are boosting their defence budgets. As a result, defence has returned to the centre of economic and political decision-making across Europe.

In this episode of Top of the Agenda, Dr Helen Jenkins speaks with Aimie Stone, Chief Economist at ADS Group — the trade association representing the UK’s aerospace, defence, security and space industries — and Enrico Russo, Managing Consultant at Oxera. Together, they explore the challenges facing the European defence sector and consider how governments can best mobilise resources to strengthen the region’s security.