More Money, Less Impact? Europe’s Defence Spending Problem

In episode eight of the Eastern Frontline Group's podcast, Reinis Pozņaks and Reinier van Lanschot are joined by economist Guntram Wolff to examine the economics behind Europe’s defence push
The Eastern Frontline Group

By The Eastern Frontline Group

The Eastern Frontline Group is an informal alliance of 43 Members of the European Parliament from 13 EU countries, representing nearly all political groups. Founded in October 2024 by Latvian MEP Reinis Poznaks, EFG works to ensure that the unique challenges of EU states bordering Russia remain a priority on the Union’s political agenda.

04 May 2026

Europe is increasing defence spending at an unprecedented pace. But is it making Europe more secure?

In this episode oft the Eastern Frontline Group's podcast, Latvian MEP Reinis Pozņaks and Dutch MEP Reinier van Lanschot are joined by economist Guntram Wolff to examine the economics behind Europe’s defence push.

They explore the key question at the heart of the debate: is defence spending truly an investment, or simply government expenditure with limited long-term returns?

The conversation looks at how Europe is spending its money, why a significant share still flows to non-European suppliers, and what that means for both security and economic growth.

It also examines the structural challenges facing Europe’s defence market, from fragmentation and lack of competition, to the difficulty of integrating small innovative firms into procurement systems.

They discuss:

  • why higher spending does not automatically mean greater security
  • the case for a more integrated European defence market
  • how competition can reduce costs and increase production
  • the role of startups and innovation in modern defence
  • and whether Europe needs to rethink its approach to defence as part of a broader economic strategy

At a time of rising geopolitical pressure, the episode asks a fundamental question: how can Europe spend better, not just spend more?

Listen below or via Apple Podcasts or Spotify

 

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