Policy Insights
Policy Insight 143: (Re)building Europe’s defence: Human capital is key
More than a century ago, John Maynard Keynes warned of the dangers of mistaking temporary geopolitical stability for permanence. In The Economic Consequences of the Peace (1919), he described the illusion of a secure European order built on unstable foundations. That warning resonates again today.
Europe must not only build anew its defence capabilities, but must do so in a way that turns a dire geopolitical predicament into an opportunity. This Policy Insight argues that by treating human capital as a core component of its military strategy, Europe can strengthen its security in tandem with its economic renewal. Economists have a central role to play in this conversation—bringing tools, evidence, and historical awareness to ensure that Europe meets the moment wisely.
