Both theorists and practitioners continue to show interest in transatlantic burden-sharing. International security and political economy scholarship offers plausible explanations for transatlantic imbalances in military expenditures. However, NATO Allies and EU Member States have pledged to one...

We empirically assess the impact of competitiveness measured by unit labor costs for current account balances in the Euro area. For this purpose, we estimate a panel with annual observations from 2000 to 2013. Our findings confirm the importance of competitiveness: Higher unit labor costs growth...

The European Commission (EC) has proposed expanding the European Defence Fund, an initiative to fund defense technology developed in Europe. As a general matter, only European firms would have access to the fund for development, and participating European nations would need to commit themselves...

This paper analyses the possible presence of Granger causality between military spending and unemployment rates in the EU15 countries. The panel bootstrap test applied allows us to control for both the presence of cross-country heterogeneity and cross-sectional dependence. Considering two...

War is back in Europe and as it becomes long-lasting, the question of armament gains central importance. This report finds that Russian military industrial capacities have been rising strongly in the last two years, well beyond the levels of Russian material losses in Ukraine. Meanwhile, the...

After decades of relative peace and security, Europe is faced with a conflict on its doorstep that threatens to upend the recent stability and shift geopolitical order. Russia's war of aggression in Ukraine has forced Europe to confront its shortcomings with regard to providing its own security...

The aim of this paper is to study the interdependence of military spending between US and a panel of European countries in the period 1988-2013. The empirical estimation is based on a: (i) a unit root tests and a cointegration analysis; (ii) FMOLS and DOLS estimations. General results highlight...

We study the effect of a (standard) monetary policy shock in the euro area on the Lithuanian economy. We employ a structural vector autoregressive model incorporating variables from both the euro area and Lithuania. The model exhibits a block exogenous structure to account for the fact that...

In this paper, we present a disaggregated framework for the analysis of past and projected structural developments in the most relevant revenue and expenditure categories and the fiscal balance. The framework, in particular, distinguishes between the effects of discretionary fiscal policy and of...