PODCAST: Rising defence spending could give big boost to chemicals

BARCELONA (ICIS)–Moves by Germany and across Europe to boost defence spending could give a significant uplift to the region’s beleaguered chemical industry.

• Need to maintain robust national or regional supply chains may benefit chemical industry in Europe, which is threatened with closures
• German defence/infrastructure spending boost could be 2% of GDP, larger than increase linked to German reunification, post-war Marshall Plan
• Rising defence spending in Europe would help boost electricity demand significantly, estimates vary from 7%-30%
• Data-driven technology for defence would also raise electricity demand
• Will raise demand for gas and renewable-based power
• Europe will need to become more self-sufficient in energy, driven by renewables

In this Think Tank podcast, Will Beacham interviews ICIS gas and cross-commodity expert, Aura Sabadus; Nigel Davis and John Richardson from the ICIS market development team; and Paul Hodges, chairman of New Normal Consulting.

Editor’s note: This podcast is an opinion piece. The views expressed are those of the presenter and interviewees, and do not necessarily represent those of ICIS.

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