Europe’s €14 Trillion Defense Tab Needs Private Capital, Carlyle Says

Europe could spend as much as €14 trillion ($16 trillion) on defense and related infrastructure over the next decade, creating a major opportunity for private capital, according to buyout firm Carlyle Group Inc.

Defense investments could soar from current projections of €4 trillion if European countries agree to proposed NATO spending targets of 5% of gross domestic product, Carlyle wrote in a report Tuesday on the eve of this week’s NATO summit. The longer-term benefits to the economy could be even more significant than the China boom that followed the Asian nation’s opening up to the world.