Italys Bridge to Nowhere Shows Defense-Boom Risks

(Bloomberg view)-The explosion of defense in Europe is as close as a technology-style gold hurry to the old continent. Weapons stocks perform better than Nvidia Corp. and defense -themed funds accumulate with the expectation of increasing military expenditures in a world more dangerous. NATO allies have accepted double defense spending goals for 5% of gross domestic product in the coming years.

However, many countries are struggling to get rid of the billions of artificial intelligence, reastryization and energy transition, where the cash comes from? Apart from Germany’s remarkable exception, many European countries are already close to the limit of investor and voter patience in borrowing and taxation. And good luck that shrinks the welfare state.

Italy, which is under a series of defense with the second highest debt rate in the euro zone, has an answer: extend the definition of “defense” to the breaking point. Authorities reportedly wanted to re -classify the proposed € 13.5 billion ($ 15.8 billion), which connects Sicily to the motherland as a defense investment.

You should almost applaud Chutzpah. Although this is not for centuries, it is a bridge that has been a field of political dreams for decades and has abundant criticism due to its cost, lack of benefit and lack of risk. It is equivalent to defending a pet political project to say that it is related to sucking again. The opposition called a MEP from the five -star movement, the plan of the military expenditures as “regiment”.

Of course, this does not mean that things that go to Bang should be considered as defense. NATO’s 5% targets are 1.5% for infrastructure and co -operation. We live in the world of deadly drones, AI and cyber attacks that require vehicles other than bullets. And governments want to ensure that the large areas of society benefit from military expenditure spread, which means pouring networks wider than normal. “Defense is a new Keynesianism, Ric said Richard Aboufia, a Consulting Aerodynamic Advisory Director.

Nevertheless, Italy’s plan should steal the alarm bells. Slapping the “Defense” label on the National Bondoggles will worsen the differences between the European countries at a time when the defense is already disintegrated. It would weaken Europe, not stronger.

It will also prove Goodhart’s law: when a number becomes a target, it stops being a useful measure. According to Der Spiegel, NATO’s previous 2% targets contained railways and some eyebrow lifting expenditures in firefighters. If 5% is set in this way, reliability breathes.

In order to ensure that the blurred lines between military and civil infrastructure are not completely disappeared, better coordination and ultimately more leadership are required. Euiss Think Tank, the US Department of Defense’s advanced research projects agency, the European version of the European version, the best scientific capabilities and further measures to make more European financing proposes to focus on destructive research and innovation.

And the Bertelsmann Stiftung Thinking Corporation also means that Germany’s unique position should also increase when it comes to defense infrastructure framework. Nobody wants more box tracking that stops leaving the door, but voters deserve better than a defense bending in green washing.

This is not about preventing some of the awards of a real economy from receiving some of the prizes of a defense burst, but to make these spread really. Italy has more positive examples of supporting a more defense -oriented Europe, such as the Plan of re -focusing some shipyards to make warships only to make warships. The explosion of defense is worth celebrating, but anywhere a bridge is not a good result.

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This column reflects the author’s personal views and does not reflect the opinion of the Editorial Board or Bloomberg LP and owners.

Lionel Laurent is a Bloomberg view columnist who writes about the future of money and the future of Europe. He was a reporter for Reuters and Forbes before.

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