Borrowing for security. The political economy of the financialising EU defence industries
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2025-06-30
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en
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This thesis explores the financialisation of European Union defence industries, focusing on the evolving role of the Commission in reshaping defence financing through capital markets. Faced by geopolitical crises, notably the war in Ukraine, and constrained by fiscal limitations, the Commission introduced debt-driven instruments under the ambitious ReArm Europe initiative, reaching 800 billion euros. This shift from traditional grant-based methods to including financial industrial actors represents a seismic shift in EU defence policy, marking the emergence of a new finance-led regime of accumulation. Employing an enriched Regulation Theory framework, this thesis analyses four interconnected dimensions: the regime of accumulation, mode of regulation, capital fractions, and strategic selectivity. Through document analysis spanning 2020 to 2025, it highlights how the Commission strategically uses regulatory innovation, such as bonds, guarantees, and de-risking instruments, to integrate financial market interests into defence funding mechanisms. Findings indicate a deliberate recalibration by the Commission, striking a balance between geopolitical urgency and financial market interests, thereby creating an emerging European Union military-industrial-financial complex. This research contributes to critical political economy literature by delving deep into how supranational institutions actively shape economic practices, challenging traditional views on EU policymaking and raising significant implications for democratic accountability and European strategic autonomy.
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Faculteit der Managementwetenschappen