European Defense Stocks Hit Record High Amid US-EU Rift.
The stocks of European defense companies soared Monday as investors anticipate massive increases in military spending by governments in the region amid its growing rift with the United States. Europe is confronting a worrying new reality: that the US, the continent’s longtime ally and security guarantor, may not help it defend itself in a future war. The index has risen more than 30% so far this year.
- This surge in defense spending could be seen as a response to the US's perceived withdrawal from European security commitments, setting a precedent for how countries will rebuild their military capabilities without American support.
- How will the rising tide of nationalism and protectionism impact the long-term stability and interoperability of European defense systems?