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What are the economics of war?

Last March, Thierry Breton, the EU's commissioner for internal market, advocated for a shift of the European defense industry toward a war economy. Europe is facing an "existential threat," he said, as the Commission announced a new defense strategic plan, with a minimum of €1.5 billion ($1.6 billion) subsidy to boost the continent's war machine. Nations are investing in their armed forces too. In Germany, arms maker Rheinmetall inaugurated a new factory in February that will produce artillery ammunition, explosives and rockets. Aerospace and defense company Kongsberg also opened a new anti-ship and cruise missile manufacturing plant in Norway last June. According to the Stockholm International Peace Research Institute, military expenditure reached a peak of $2.4 trillion in 2023, the highest year-on-year rise since 2009. Watch the video above to learn more about the economics of war.  #CNBC #CNBCExplains ----- Subscribe: http://cnb.cx/2wuoARM CNBC International TV: https://cnb.cx/2NGytpz LinkedIn:   / cnbc-international   TikTok:   / cnbci   Facebook:   / cnbcinternational   Instagram:   / cnbcinternational   Threads: https://www.threads.net/@cnbcinternat... X:   / cnbci   Telegram: https://t.me/cnbci WhatsApp: https://bit.ly/CNBCiWhatsApp