Debt and Rearmament
Fiscal Constraints and the Sustainability of NATO Defence Spending
24 pages · PDF · 12 September 2025 · Licensed single-user copy, watermarked to the buyer
€499 excl. VAT — EU VAT calculated at checkout (VAT ID accepted for reverse charge); invoice issued after payment
One click to Stripe — guest checkout, no account. Your download appears on the confirmation page and arrives by e-mail right after payment (link valid 72 hours, up to 5 downloads).
About this report
NATO countries face a delicate balancing act between urgent rearmament needs and fiscal sustainability. Public debt levels across the Alliance are at historic highs, constraining the ability of many governments to boost defence spending without risking financial instability.
Countries with ample fiscal space, like Germany, have responded to new security threats by creating special off-budget funds and invoking fiscal exceptions to finance military modernization. Highly indebted allies – exemplified by Italy, France, and Greece – confront far tougher choices.
Key questions this report answers
- How are NATO countries balancing urgent rearmament needs against fiscal sustainability at historic-high debt levels?
- What fiscal mechanisms (off-budget funds, fiscal exceptions) do countries like Germany use versus highly indebted allies like Italy, France and Greece?
- Is defence spending a stimulus or a strain, drawing on Cold War and post-Cold War lessons?
- What frameworks and innovations could enable sustainable rearmament?
Inside this report
- Introduction
- Historical Rearmament Cycles: Financing and Debt Trade-offs
- Fiscal Mechanisms for Defence Funding: Past and Present
- Defence Spending as Stimulus or Strain: Economic Impacts
- Lessons from Cold War and Post-Cold War Experiences
- Toward Sustainable Rearmament: Frameworks and Innovations
Who it's for
Strategy, corporate-development and investment teams that need an ecosystem-level view — budgets, industrial capacity and technology landscapes — before committing capital or capacity.
Related reports
Methodology, format & delivery
DFM reports are built from primary and official sources — TED procurement notices, CORDIS and the EU Funding & Tenders Portal, EIB operations, the NATO Innovation Fund portfolio, SIPRI data, official budget documents and company disclosures — read together with the underlying legal texts. Sources are cited in the document; it reflects them as of its publication date (12 September 2025). You receive a 24-page PDF, watermarked to you on every page, delivered on the confirmation page and by e-mail immediately after checkout (personal link valid 72 hours, up to 5 downloads). Guest checkout, single-user licence — Terms of Sale.
Related on DFM
More Strategic reports · All reports
Prefer unlimited access?
Prefer unlimited access? Every report like this is included in the DFM Analysis subscription. See plans →