When stars align : leveraging European defence budgets to drive a dual-use tech boom

Europe faces a dual crisis of growing security threats and declining economic competitiveness. Increased defence spending offers an opportunity to address both challenges. Through initiatives such as ReArm Europe and NATO's 5% pledge, EU Member States are committing substantial resources to bolster deterrence. Governments should also leverage these funds to invest in the continent's long-term prosperity. › In response to security threats, the US, China and Ukraine have used public investment in dual-use innovation to gain military advantage and boost industrial growth. Achieving such a transformation in Europe will require Member States to take the initiative, with Brussels playing a coordinating role. › To succeed in this endeavour, Europe should streamline regulations, attract talent from partner countries, and support promising projects by bridging early-stage funding gaps through innovative public-private financing mechanisms.