'Defence spend is no longer optional: Europe needs to find the money'

Nearly all countries are spending less on their defences but Victoria Leggett, portfolio manager, European equities at Union Bancaire Privée, argues recent threats mean not increasing Europe's defence spend is no longer an option for the region

The economic crisis of 2008, coupled with an almost-decade long fight in the desert, forced the US and Europe to shrink budgets. The UK has cut its budget by 3.6% every year since 2009. Most NATO members follow a similar pattern. Almost all countries except the US are spending less than the 2% GDP advised. Why does this matter? During the time where European defence spend has decreased by around 20%, Russia's has increased by over 50%, with a third of this dedicated to nuclear. It now has the third largest spend behind the US and China. China is into its second decade of double-digit i...