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European countries are investing far more in their defense than they were just three years ago. However, experts from Bruegel and the Kiel Institute for the World Economy warn that this increased expenditure will not necessarily translate into the improved military capability Europe is aiming for by 2030. Achieving that goal will require not only greater use of European procurement and competition between arms manufacturers to drive down costs, but also a concerted effort to modernize armed forces and prioritize new technologies.

Official development assistance (ODA) is widely studied for its impact on recipient countries, but its effects on donor countries remain underexplored.

Lena Dräger, Research Director of the Monetary Macroeconomics Group at IfW Kiel, comments on the expected decision by the Federal Reserve in the US to leave its policy rate unchanged: