Europe’s Arms Buildup: A Capitalist War Machine?
Milan, Italy – A startling analysis reveals a fundamental shift in European defense policy, with war increasingly becoming an integral part of the continent’s capitalist system. Chiara Bonaiuti, a researcher at Ires Toscana and coordinator of the Arms Trade Observatory, warns that the current surge in military spending isn’t simply a matter of security, but a profound economic and political realignment with potentially devastating consequences. This breaking development comes as Europe prepares to inject up to €800 billion into military capabilities and adhere to NATO’s call for member states to raise defense spending to 5% of GDP by 2035.
From Crisis Response to Industrial Policy?
The question isn’t whether Europe is rearming, but why. Bonaiuti’s research, detailed in the forthcoming book “L’industria europea della difesa ai tempi della guerra” (The European Defense Industry in Times of War), suggests a deliberate transformation. Defense spending is rapidly evolving from a reactive measure to address crises into a proactive industrial policy designed to fuel capitalist growth. But at what cost? The analysis presented at the Festival dell’Economia Critica in Milan highlights a troubling trade-off: increased military investment is happening at the expense of social programs and genuine political autonomy.
The Rise of Financialized Warfare
For decades, the defense industry operated with a significant degree of state control. That’s changing. Over the past two decades, privatization and stock market listings have opened the door for massive financial investment. Today, giants like Leonardo, Rheinmetall, and Thalès aren’t just backed by governments; they’re heavily invested in by global financial powerhouses like BlackRock, Vanguard, State Street, and Capital Group – primarily American funds. These aren’t investors concerned with European security; they’re driven by profit. “They don’t invest for the security of European citizens, but for the return,” Bonaiuti emphasizes. This financialization of warfare raises serious questions about accountability and the true beneficiaries of conflict.
Does Rearmament Actually Boost the Economy?
The narrative often pushed by proponents of increased military spending is that it acts as an economic stimulus. However, the data paints a different picture. Between 2013 and 2024, European military expenditure rose by approximately 70%, while GDP only increased by 13% and employment by 9%. This lack of proportional growth suggests that military spending is a remarkably inefficient engine for economic development. In Italy, for example, a €1 billion investment in armaments generates roughly 3,000 jobs, compared to 9,000-11,000 jobs created by the same investment in healthcare or education. This isn’t about creating widespread prosperity; it’s about concentrating wealth in the hands of a few powerful companies and investors. It’s a consumption that doesn’t build, but rather drains resources.
The US Shadow and the Illusion of Strategic Autonomy
Europe’s ambition to achieve “strategic autonomy” – the ability to act independently on the world stage – is further complicated by its overwhelming dependence on the United States. Approximately 60% of European armaments originate in the US. This reliance extends beyond hardware to cutting-edge technologies like drones, satellites, and artificial intelligence, where American Big Tech companies dominate. Without a robust domestic technological base, Europe risks becoming perpetually dependent, spending vast sums without reaping substantial economic benefits. The promise of a truly independent European defense capability remains largely unfulfilled.
Escalation and the Failure of Diplomacy
The current geopolitical climate, particularly the conflict in Europe, fuels the argument that more defense spending equals more security. But Bonaiuti’s research, drawing on established literature, suggests the opposite. Proxy wars – conflicts where external actors provide arms – are inherently prone to escalation, both in terms of the weapons used and the geographic scope. The situation between the European Union and Russia, she warns, is dangerously close to a full-blown conflict. The key to de-escalation, according to scientific evidence, lies in activating diplomatic channels – something the EU is currently failing to do.
A Democratic Deficit?
Perhaps the most concerning aspect of this arms buildup is the lack of genuine democratic consent. Media and political leaders often normalize the idea that increased military spending is the only path to security, while public opinion – particularly among younger generations – remains skeptical or outright opposed. There’s a growing disconnect between representatives and the represented, raising the specter of a policy driven by industrial and financial pressures rather than the will of the people. This is a dangerous erosion of democratic principles.
The path forward requires a fundamental shift in power dynamics. As historian Edward Thompson argued, militarism is a complex system that actively selects and reinforces those who benefit from it. Breaking this cycle demands courage – the courage to challenge the prevailing logic and forge new forms of democratic participation, as evidenced by the recent youth-led protests in support of Gaza. There are alternatives to war, but they require critical thinking, expertise, and a willingness to imagine a different future. Stay informed and engaged with the evolving situation at Archyde.com for ongoing coverage and in-depth analysis of global events.
