UK Announces 7% Higher Defense Budget to Counter ISIS

Britain announced spending on defense equipment — including Boeing (BA) planes — will jump 7% to £178 billion ($270 billion) over the next decade.

“The world is more dangerous and uncertain today than five years ago,” the government said in a statement Monday, citing ISIS, the Middle East, Ukraine and the rising the threat of cyber attacks and pandemics.

Some of the additional £12 billion ($18 billion) in spending will go towards buying nine new Boeing P8 maritime patrol aircraft for surveillance and anti-submarine warfare. It will also speed up the purchase of a number of Lockheed Martin (LMT) F-35 fighter aircraft and extend the life of Typhoon fighter jets made by BAE Systems (BAESF) and Airbus (EADSF).

Total U.K. defense spending in the previous fiscal year was £36 billion ($55 billion). The government has pledged to meet the NATO goal that each member country spends 2% of its GDP on defence.

British finance minister George Osborne said Sunday the country is also increasing the counter-terrorism budget by 30%, though he did not give further details.

via CNN

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza