Europe strengthens the economy by boosting weapons production

It is not a secret, that Western industry is now locked in a battle with China. For example, for decades Germany has enjoyed a reputation as Europe’s car capital, with slogans such as Vorsprung durch Technik emblematic of its political and industrial prowess.

But troubles looming over Volkswagen, where unions are battling threats of layoffs and factory closures have raised questions not just about its future is but the wider European car industry.

Those fears have been fueled by China muscling in on the EU’s home turf with its cheaper goods, including electric vehicles.

In November, Stellantis, which also owns the Peugeot, Citroën, Chrysler and Fiat brands, announced plans to shut its Vauxhall van factory in southern England, putting more than 1,000 jobs at risk as it joins rival automakers in scaling back operations in a difficult trading environment.

The announcement came as automakers such as Volkswagen, Ford, Nissan and GM are cutting jobs in response to softening demand for EVs, which consumers see as too expensive, and increasing Chinese competition.

The matter is, the Western auto industry is just the tip of the iceberg of a larger problem. In general, industrial production is at risk of falling in most European countries. Now, it has become clear that Europe really needs to make a major effort to save itself.

It has chosen one of the most effective and the quickest way to save the situation: boosting weapons production.

According to figures from SIPRI, the Stockholm International Peace Research Institute, Germany has become the world’s fourth largest weapons exporter.

German defense companies are earning record revenues as many countries have begun rearming their armies since the start of the Ukrainian conflict.

Weapon production all over the world aims not only to help this country. By expanding such production capabilities, Europe saves its economy, rearms and earns reputational bonus.