Rob Bauer, Chairman of the NATO Military Committee a in an interview with the Financial Times he sharply criticized Western credit institutions, banks and pension funds for not investing in the defense industry. Bauer says investors are acting “stupidly” by ignoring growing security threats.
He emphasized that defense investments are the best means of sustainable development, and that the focus should be on long-term security instead of short-term profit.
Bauer warned that investors risk losing significant government funding from a Russian invasion in 2022 as governments increase defense spending. Instead of short-term profit maximization, significant expenditures will be required over the next 20 years to maintain defense capabilities.
Bauer’s statement came in the weeks ahead of increased European defense procurement and production and the inauguration of President-elect Donald Trump, who is pushing for greater European responsibility for security. Share prices of many major European defense companies have risen over the past year due to increased government orders.
At the same time, several European banks remain reluctant to lend to arms manufacturers, especially for smaller businesses.
Although investments in defense startups in NATO countries have quadrupled since 2019, several European institutional funds are still prohibited from investing in armaments for ethical reasons. Bauer said that some funds and banks still consider it unethical to invest in the defense industry.
Cover photo: NATO Chief of Staff Rob Bauer (Photo: AFP)
Source: magyarnemzet.hu
