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Publications Loading… 0 / 0 x Defence spending and its short and longer-term macroeconomic effects 1 Introduction 2 Cross-country comparison of defence spending in the euro area Box 1 Understanding defence spending statistics 3 Fiscal and macroeconomic implications of rising defence spending over the short and medium term Box 2 The macroeconomic effects of defence spending beyond the projection baseline: model-based scenario analysis and empirical evidence 4 Longer-term impact on output and productivity Box 3 Economic benefits of higher public R&D defence spending 5 Conclusions Prepared by Cristina Checherita-Westphal, Marta Rodríguez-Vives, Tibor Lalinský and Miles Parker Published as part of the ECB Economic Bulletin, Issue 6/2026.