Defence spending will remain robust in Europe

Significance

However, many countries, including those worst-affected by COVID-19, have committed to maintaining defence spending commitments, suggesting that 2020 will have less of an impact on defence budgets than the 2008-09 financial crisis did.

Impacts

• Defence demand will not offset the hefty damage done to commercial aerospace by the COVID-19 crisis.
• The short-to-medium-term prospects of an institutionalised EU-UK security arrangement are bleak.
• From 2022 countries will start looking at ways to reduce deficits and service their debt.