"Russia's war economy has reached a staggering scale that should alarm every European leader. Between 2022 and 2024, Moscow allocated at least $263 billion to defence outlays - approximately 7% of GDP annually - transforming a massive portion of its economy into a military-industrial complex on a scale that is unprecedented since the Cold War. Meanwhile, China just tightened its grip on rare earth exports, giving Beijing the power to potentially veto European defence production."
"The numbers tell a sobering story. While European NATO members collectively spent approximately €343 billion on defence in 2023, this was spread across 27 nations with fragmented procurement systems and slow adoption of emerging technologies. Russia, with an economy smaller than Italy's, has weaponized its entire industrial base with ruthless efficiency. The asymmetry isn't just in spending - it's in speed, focus, and willingness to embrace disruptive innovation."
"Europe now faces a critical choice: continue relying on legacy defence contractors operating with decades-old procurement timelines, or rapidly embrace the technological revolution reshaping modern warfare. The evidence from Ukraine is unambiguous: AI-powered drone swarms, autonomous systems, and software-defined platforms are determining battlefield outcomes. Yet European governments remain hesitant to buy from the innovative startups building these capabilities."
Russia allocated at least $263 billion to defence between 2022 and 2024, about 7% of GDP annually, converting much of its economy into a Cold War-scale military-industrial complex. China tightened control over rare earth exports, giving Beijing leverage to disrupt European defence production. European NATO members spent approximately €343 billion in 2023, but spending was fragmented across 27 nations with slow procurement and weak adoption of emerging technologies. Ukraine demonstrates that AI-powered drone swarms, autonomous systems, and software-defined platforms are reshaping battlefield outcomes. European defence spending is projected to rise from €285 billion in 2021 to €970 billion by 2030, necessitating rapid adoption of startups and disruptive innovation.
#russia-war-economy #european-defence-spending #defence-technology-and-innovation #china-rare-earth-export-controls
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