Europe to increase its defence spending by $50 billions after Paris Attacks by ISIS

PARIS: Europe’s defense industry is set to reap a $50 billion windfall as the Nov. 13 terrorist attacks on Paris prompt governments to ramp up spending on military capabilities spanning cyber security to fighter jets, armored vehicles and drones in an effort to defeat Islamic State (IS or ISIS). France, where Dassault Aviation SA’s Rafale fighter jet is made, has halted plans to cut almost 10,000 military personnel, while Germany will spend an extra 8 billion euros ($8.5 billion) on defense and Britain has earmarked a further 12 billion pounds ($18 billion), benefiting companies including BAE Systems Plc. Italy said Tuesday it would devote 1 billion euros more to security, after the draft budget called for 2 billion euros of reductions. European governments are rethinking their defense policies after years of cuts tied to the draw down in Afghanistan and Iraq and austerity programs imposed after the global slump.. “Over the 2015-2019 period, an extra $50 billion will be added to Western European defense spending as a result of changes implemented this year,” said Fenella McGerty, senior analyst for defense budgets at IHS Jane’s.. The most immediate response to this month’s attacks saw France join air strikes against Islamic State positions in Syria, with bombing sorties led by Dassault’s Rafales, further burnishing the combat credentials of a warplane that’s enjoyed a string of overseas order successes after deployment in Afghanistan, Libya, Iraq, Mali and the Central African Republic since 2007. Britain may follow suit, extending its anti-IS campaign from Iraq to Syria, following an announcement from Prime Minister David Cameron later this week. Reference: New York Times