European leaders are tackling one of the hottest topics—military spending. This issue is front and center, and there is no way around it! Europe has to rearm! Against this backdrop, the euro is soaring by the hour.
According to French newspaper Le Figaro, the euro's rise is linked to discussions about increasing defense spending in the European Union. In other words, the European currency has reacted to the news of Europe’s rearmament.
Le Figaro reports that European leaders' push to boost defense budgets has caused the euro to surge. As a result, its exchange rate against the US dollar jumped by 1.02%. However, against the pound sterling, the euro gained only 0.12%, which experts attribute to the UK’s own increase in military spending.
Analysts at Swissquote Bank believe that Europe's commitment to supporting Ukraine will drive up military spending and, in the short term, stimulate the economy. Additionally, the European Central Bank (ECB) may have more room to slow down aggressive interest rate cuts.
Earlier, it was reported that shares of Europe's largest defense companies skyrocketed by over 10% amid Brussels’ readiness to ramp up military spending.
