More jobs could be created than previously expected Security Infrastructure Drive in Europe could create 4.4 million jobs, study says

From Detlev Karg 1 min Reading Time

Investment in security-related infrastructure across Europe could create up to 4.4 million jobs over the next decade, according to a study by EY-Parthenon and German Dekabank. 

Modern ports and logistics hubs are considered key elements of Europe's security-related infrastructure. (Picture:  AI generated)
Modern ports and logistics hubs are considered key elements of Europe's security-related infrastructure.
(Picture: AI generated)

The report estimates that European NATO members will need to invest 1.5% of GDP annually in security infrastructure, equivalent to around €320 billion a year, including €62 billion in Germany. The authors calculate that every euro invested would generate €2.51 in economic output, resulting in annual production worth about €822 billion. Germany alone could gain around 723,000 jobs.  Construction, information and communications technology, logistics, and the electronics sectors are expected to benefit most. “Infrastructure investments – from transport and energy to ports, airports, shelters and cyber security – form the backbone of military capabilities,” said Jan Friedrich Kallmorgen, Partner at EY-Parthenon. He expects the spending to increase European GDP by around 1.5%.

High investment needs amid strained public finance

The report warns that the planned spending will come at a time when many European governments are already facing significant budgetary constraints and a long-standing infrastructure investment backlog. Delivering the required projects quickly will therefore pose both financial and operational challenges. “The public sector will not be able to shoulder the cost of military infrastructure investments on its own”, said Matthias Danne, former DekaBank board member and Managing Director of defence investment consultancy RE-Fence. “Without private capital, achieving the required level of resilience will not be possible.” He argued that public-private partnerships, while still uncommon in Germany, have proven effective elsewhere and will be essential to meet NATO's infrastructure targets. According to Danne, such models are particularly well suited to dual-use infrastructure projects in areas including energy, transport, communications and digital networks.

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