ECB | Higher defence spending and its impact on household expectations | European American Chamber of Commerce New York [EACCNY] | Your Partner for Transatlantic Business Resources Higher defence spending and its impact on household expectations

ECB | Higher defence spending and its impact on household expectations | European American Chamber of Commerce New York [EACCNY] | Your Partner for Transatlantic Business Resources Higher defence spending and its impact on household expectations

Prepared by Adam Baumann, Cristina Checherita-Westphal, Georgi Kocharkov, Steffen Osterloh Published as part of the ECB Economic Bulletin, Issue 5/2025. Fiscal policies in the euro area are increasingly shaped by a focus on defence spending in response to heightened geopolitical tensions. The February 2025 Munich Security Conference, the launch of the European Commission’s Preparedness Union Strategy in March and the conclusions of the June 202…