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The Finance of Deterrence
What is the central argument of “The Finance of Deterrence”, and why does it matter for European defence and dual-use markets?
The Finance of Deterrence: Deterrence is not merely a matter of strategy and doctrine; it. Defence-finance analysis; 5-page sourced DFM PDF report.
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Original DFM publication · DFM Analysis report · 2025-10-16
Deterrence is not merely a matter of strategy and doctrine; it is a question of sustained financing. The war in Ukraine has revealed that Europe’s defence budgets, even when nominally large, often fail to translate into readiness, production, or sustained operational capacity.
The problem lies in the structure of expenditure, not only in its scale. For decades, European governments have allocated funds episodically, responding to crises rather than maintaining a stable flow of investment. Such a pattern breeds inefficiency, discourages industry from expanding capacity, and prevents the accumulation of strategic reserves.
This analysis answers: What is the central argument of “The Finance of Deterrence”, and why does it matter for European defence and dual-use markets? What does this mean for European defence funding, procurement and investment decisions? How mature and defensible is the position described in “The Finance of Deterrence”? Which European actors, programmes and funding instruments are most exposed?
Key takeaways
- The problem lies in the structure of expenditure, not only in its scale.
- Such a pattern breeds inefficiency, discourages industry from expanding capacity, and prevents the accumulation of strategic reserves.
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Original DFM analysis
The Finance of Deterrence
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FAQ
What is The Finance of Deterrence?
The war in Ukraine has revealed that Europe’s defence budgets, even when nominally large, often fail to translate into readiness, production, or sustained operational capacity.
Why does The Finance of Deterrence matter for European defence?
For decades, European governments have allocated funds episodically, responding to crises rather than maintaining a stable flow of investment.
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