War, Budgets and Resilience: Economic and Financial Challenges of Defence Financing in a Volatile Strategic Environment

In current strategic environment, characterized by persistent geopolitical tensions and ongoing military conflicts, has significantly influenced national approaches to defence financing. War in Ukraine and other regional security crises have led many states, particularly within NATO and Europe, to increase defence expenditures to strengthen military capabilities and strategic preparedness. However, this growing emphasis on defence investment raises important economic and financial challenges related to fiscal sustainability, budgetary allocation and the long – term resilience of national economies. This paper examines the relationship between defence financing models and economic resilience in the context of a volatile strategic environment. It explores how different approaches to financing national defence systems influence the capacity of states to maintain both security readiness and economic stability. Analysis is focusing on recent trends in defence spending the pressures placed on public budgets and the need for sustainable financial frameworks capable of supporting long – term defence commitments. This study argues that architecture defence financing is essential for balancing military needs with broader economic objectives. Sustainable financing models that incorporate strategic planning, multiannual budgeting and efficient resource allocation can enhance both defence performance and economic resilience, contributing to stronger national security and greater adaptability to evolving security challenges.