BlackWizard91
Rookie
- May 6, 2024
- 19
- 29
- 1
Never underestimate Europe’s capacity to disappoint. Rearmament euphoria and the explosive catch-up rally in European industrial stocks over the last month have run ahead of hard fiscal facts.
Italy and Spain do not have credible plans to ramp up defence spending, and nor does France when you drill into the details.
The Club Med bloc and Belgium are already in an incipient compound interest trap of rising real borrowing costs (as is the UK).
The European Commission’s €800bn ReArm Europe Plan slips through your fingers like fine sand – “virtual” money in the lapidary words of Italy’s Giorgia Meloni, who said it was “mad” to try to go it alone without the US.
Italy and Spain do not have credible plans to ramp up defence spending, and nor does France when you drill into the details.
The Club Med bloc and Belgium are already in an incipient compound interest trap of rising real borrowing costs (as is the UK).
The European Commission’s €800bn ReArm Europe Plan slips through your fingers like fine sand – “virtual” money in the lapidary words of Italy’s Giorgia Meloni, who said it was “mad” to try to go it alone without the US.
