This NPR Indicator podcast discusses the increased pressure on European NATO members to significantly raise their defense spending from 2% to 5% of GDP, as demanded by the Trump administration. The podcast explores the economic challenges this poses for various European nations, considering their current debt levels and economic conditions, with examples given of countries like Poland, the UK, and Greece. Experts weigh in on the potential economic consequences and the possibility of increased borrowing or military Keynesianism to fund the defense increases. The potential long-term benefits for Europe, including a more robust independent defense industry and reduced reliance on the US, are also considered. Ultimately, the podcast highlights the complex geopolitical and economic ramifications of this significant shift in defense spending.
