Iranian conflict forces Europe to choose between 'guns and butter' — NYT

Business & Economy April 01, 16:05

This concept forces states to balance defense expenditures against social obligations to citizens in their fiscal planning during budget allocation to manage competing priorities

NEW YORK, April 1. /TASS/. The conflict between the United States and Iran has exposed Europe's longstanding shortfall in defense investment, forcing its leaders to choose between military spending and their existing social commitments, analysts Jim Tankersley and Amanda Taub of the US newspaper The New York Times said.

"Europe has a 'guns-versus-butter' problem, and the war in Iran made it worse," the publication notes. This concept forces states to balance defense expenditures against social obligations to citizens in their fiscal planning during budget allocation to manage competing priorities. Choosing the former traditionally requires cuts to healthcare, education, and infrastructure in national budgets when reallocating resources toward defense.

The journalists note that Europe for decades invested more in social support for its population, benefiting from US security commitments in Europe, but that situation changed with the arrival of President Donald Trump. They recalled that Trump repeatedly threatened Europeans, telling them they would have to handle their own defense.

"Most European countries have realized that they need to spend a lot more on guns to reduce their military dependence on the United States," the publication notes. "Shifting that balance could be fiscally and politically painful." The analysts noted that to ensure its defense, Europe will have to raise taxes and cut social spending, which will lead to public discontent, posing political risks for current European politicians. They added that the situation is only being exacerbated, recalling that the conflict in Iran and the closure of the Strait of Hormuz have led to rising fuel prices, with European populations beginning to demand the removal of taxes on gasoline.

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