Security official: G7 military expenditure must reach the level of the Cold War period

(Bloomberg, Washington) Although the global defense expenditure last year has reached a record of $ 2020 billion (nearly S $ 30 trillion), in the face of Russia, the turbulent Middle East, which is about to move on the eastern border of Europe, and the turbulent Middle EastChina's military expansion and security officials believe that the military budget may return to the Cold War to account for 4%of the GDP (GDP) in the Cold War to cope with the security challenges of the 21st century.

Based on the estimation of Bloomberg's economy, if the United States and the Seventh -Powers' allies will reach such a level, this will be equivalent to more than $ 10 trillion in the next 10 years.

Bloomberg's chief geopolitical analyst, Welch, said that the "peace dividend" after the Cold War is about to end, which may have a reform impact on national defense enterprises, public finances and financial markets.

According to NATO regulations, the annual defense expenditure of member states must account for at least 2%of GDP. To achieve this goal alone, it will slowly slow down the debt restructuring plan after the crown disease epidemic.It is necessary to further increase to 4%. Some countries with weak financial resources are probably to make painful choices in increasing bonds, significantly cutting other aspects or aggravating taxation.

If France, Italy and Spain choose to cope with higher defense expenditures by issuing bonds, the debt burden will be particularly heavy.For example, Italian debt accounts for 144%of GDP this year, and it is estimated that by 2034, it will soar to 179%.Increase to 131%.

Although the defense expenditure was raised, Johnson, the former chief economist of the International Monetary Fund, did not think it would trigger the fiscal crisis. He said: "I am worried that failure to defend the country may trigger a national security crisis."

The phenomenon of increasing military spending is all over the world.China's national defense budget will increase by 7.2%this year, the highest increase in five years.According to Zhen's defense consulting agency's analysis of 22 Asia -Pacific countries, Malaysia's defense expenditure increase will rank in the Asia -Pacific crown of 10.2%this year, with a total budget of 4.2 billion US dollars.One hundred million U.S. dollars.