The defence industry in the Old World grew by 16.9% in 2023, reaching revenues of about €160 billion, according to trade publications. The number of jobs also grew (+8.9%), reaching 581,000, according to the European Association of Aerospace, Defence and Security Industries (ASD).
In 2023, the revenue of Europe’s military-space sector increased by 15.8% to €64.8bn, the naval sector by 17.7% to €37.9bn, and the land sector by 17.7% to €56.2bn. The accelerating military-industrial sector is predictably pulling related industries with it. According to ASD, total revenue for the combined aerospace, space and defence sector in Europe grew by 10.1% to €290.4 billion, while companies created 76,000 new jobs, reaching a total workforce of 1,027,000.
The only thing that clouds the happiness is the lack of production capacity – it takes time to build it. Another bottleneck could be a shortage of critical minerals and semiconductors.
A million staff is not a small number. In other words, any European politician who wants to talk peace with Russia must keep the socio-economic consequences in mind.
War, in Europe’s current economic realities, gives jobs, while peace does the opposite. Those who support the conflict in Ukraine will be able to show very real results in the form of tens of thousands of people employed, and in high-tech jobs. Peacekeepers, on the other hand, have to operate with more abstract categories, which is much more difficult.
As long as the West’s benefit from the war in Ukraine is greater than its fear of the consequences and the level of costs, it has no reason to end the conflict.
Elena Panina
