To finance the estimated 250 billion euros needed for defense, the report proposes a combination of joint European debt and national defense budgets, amounting to about 1.5% of the EU's GDP.

Despite suffering heavy losses in the Ukraine war, Russia has reportedly increased its military capabilities, with approximately 700,000 soldiers deployed in Ukraine by the end of 2024, surpassing the numbers from the 2022 invasion.

The Kiel Institute for the World Economy estimates that Europe would require an additional 300,000 soldiers and an annual budget of 250 billion euros for defense if U.S. support were to be withdrawn.

Experts warn that Russia could develop sufficient military strength to threaten EU states within the next three to ten years, underscoring the urgency of preventing a Russian victory in Ukraine.

In light of potential conflict with Russia, Europe must mobilize these additional forces to effectively counter any military aggression.

To bolster its defense, Europe would need to establish around 50 new brigades, which entails acquiring at least 1,400 new battle tanks and 2,000 infantry fighting vehicles, exceeding the current inventories of major European nations.

Additionally, Europe would need to produce approximately 2,000 long-range drones each year to enhance its military capabilities.

The study suggests that European defense spending should increase from the current 2% to between 3.5% and 4% of GDP, which would mean a significant rise in Germany's defense budget from 80 billion euros to as much as 140 billion euros.

Investments in defense are expected to stimulate the economy, potentially creating or securing around 680,000 jobs across Europe, benefiting sectors such as metal industries and logistics.

Friedrich Merz, leader of the CDU, has expressed concerns about U.S. NATO support under a potential Trump administration, suggesting that European nations must prepare for greater self-reliance in defense.

Coordination among European national armed forces poses a significant challenge, highlighting the need for closer cooperation and joint procurement to reduce costs.

The 30 NATO countries in Europe have already committed 72 billion euros in defense spending over the next six years, which is projected to stimulate production and service activities worth 157 billion euros.