Theoretical and Applied Economics
No. 2 / 2026 (647), Summer
Military expenditure and economic sustainability: implications of the SAFE program
Bucharest University of Economic Studies, Romania
Rares-Emanuel POP
Bucharest University of Economic Studies, Romania
Abstract. This paper analyses the compatibility between the expansion of military spending generated by the SAFE (Strategy, Armament, Financing, Efficiency) programme and the long-term fiscal sustainability of the European Union Member States, with a focus on the cases of Romania, Poland and Hungary. Starting from a dual theoretical framework: the crowding-out effect versus the Keynesian multiplier, the research applies the public debt sustainability equation (Δd = r − g · d + pb) and the fiscal multiplier analysis to assess the allocative efficiency of the programme. The results of the longitudinal comparison (2021–2026) demonstrate that the economic impact of the SAFE programme is non-linear and critically dependent on industrial absorption capacity: Poland transforms defence into a competitive advantage (multiplier > 1), while Romania experiences a structural deterioration in the trade balance (−1.2% of GDP). The conclusions emphasize that the economic sustainability of SAFE requires the localization of production, the implementation of the Fiscal Golden Rule, and the stimulation of public-private partnerships.
Contents
Military expenditure and economic sustainability: implications of the SAFE program
Regional inequalities and human capital adaptability in Romania
Income inequality: The Resource Distribution Index (RDI)
Testing the weak form efficiency of green financial markets: A comparative study between developed and developing green financial markets
Exploring symmetry and asymmetry in evacuation dynamics: A comprehensive bibliometric and computational analysis
AI-driven marketing models as a competitive advantage in global markets
Does institutional quality promote economic growth in West Africa?
A dynamic panel data analysis of the asymmetric impact of labour cost on intra-EU migration
Determinants of CO2 emissions in ASEAN-5: The role of human development, renewable energy, and economic growth
Effects of digital economy on economic growth: Evidence from low- and middle-income countries in Africa
Adaptive AI, behavioural pattern formation, and the development of human cognition
Tax-driven alignment between conforming and non-conforming earnings management across different accounting standards
Effect of inclusive business models on multidimensional poverty in Burkina Faso
Gross financial wealth or net financial strength? Household balance sheets and economic development in the European Union
Government expenditures and tax policy: A comprehensive fiscal analysis for Greece from 1974 to 2018
What is the nature of the relationship between inflation and economic growth? Empirical evidence for the 13 least developed African countries
Digital trust and consumer psychology: A robust analysis of youth entrepreneurship in emerging Indian markets
Can monetary policy drive inclusive social development in Africa? Instrumental variables quantile regression approach
Analysing the relationship between tourist flows and socio-economic development. A comparative case study: Romania vs. PIGS countries