As the crisis in Ukraine has influenced several European countries to increase their military spending, they could be the next to undergo a Greek-style crisis.
Countries in question are Baltic States, Poland and the Scandinavian countries.
The only nation which has benefit of this is the US, because they are leading weapons sellers.
It appears that military conflict between NATO and Russia is on its way. The real reason behind this assumption is that the US wants to increase military spending of NATO members by creating fear of so-called Russian threat.
The Stockholm International Peace Research Institute has reported that increased fear among people in Europe has been influenced by political and military crisis in Ukraine. That is the reason behind increased military spending of NATO members.
The following countries have increased their military budgets in 2015 – Czech Republic (+3.7%), Estonia (+7.3%), Latvia (+15%), Lithuania (+50%), Norway (+5.6%), Poland (+20%), Romania (+4.9%), Slovak Republic (+7%), and non-NATO member Sweden (+5.3%).
However, countries like Britain, France, Germany, Italy, Portugal, Denmark and Spain have reduced their military spending.
The US has immense benefits as the world’s biggest weapons exporter, but they would also benefit if these countries overspend and become indebted. These countries could experience the Greece scenario.
Greece owes $320 billion and more than $150 billion was spent on the military. While other countries dedicated 2% of GDP to the military, Greece was spending 7%. And five years after the onset of the crisis, Greece is the highest military spender in the European Union with 2.2% of GDP.
The option of reducing military spending was completely ignored by Alexis Tsipras and the creditors.
The amount of $2 billion in finances could be generated if Greece reduced its military spending on 1%. By doing this, the IMF demands would be met and austerity policy could be avoided.
However, this option is dismissed because Greece’s military spending has been lucrative for Germany, France and the US. Based on the report from SIPRI, until 2010 Greece purchased 25% from Germany, 13% from France and 42% from the US.
In addition to this, German and French governments are Greece’s biggest institutional creditors.
Germany and France used Greece to increase sales of their military industries. These deals were also covered in corruption. Greece’s ex-defence minister Akis Tsochatsopoulous has been sentenced to 20 years in prison for accepting bribery involving $75 million, while German company Ferrostaal had to pay $150 million for its role in the arms racket.
And now, other countries are overspending on military under the alleged Russian threat. This only benefits the US military-industrial complex and its German, French and British counterparts with billions of dollars. But if the history repeats itself, Baltic states, Poland and the Scandinavians are on the verge of Greek-style debt crisis.