<p>➀ The European Commission plans to increase defence spending as part of its ReArm Europe plan, aiming to create €650 billion in additional spending capability over four years; </p><p>➁ An increase from 2% to 3.5% of GDP in defence spending could cost around €300 billion annually, but could also stimulate economic growth; </p><p>➂ Ilsetzki’s analysis suggests this increase could lead to 0.9 to 1.5% GDP growth, which is welcomed considering the bloc’s 0.9% GDP growth in 2024.</p>