--- title: "ReArm Europe: the EU’s €800bn defence surge" description: ReArm Europe’s €800bn defence plan is boosting European defense stocks while Germany’s historic debt move sends bond yields to their worst drop since 1990. 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You can change your settings below to refuse the use of cookies. For more information, please refer to the [Cookies policy](https://www.syzgroup.com/en/legal-notices). Mandatory cookies Functional cookies Statistics & marketing I confirm I am not a US citizen residing in the US I confirm I am not accessing this site from the US I confirm that I am not a resident of Canada (except for Ontario, Quebec, British Columbia or Alberta). Agree and confirm ### Restricted access We are sorry that for legal reasons we are not able to help US citizens or Canadian residents other than in Ontario, Quebec, or Alberta. Best wishes for the future… ### Restricted access We are sorry that for legal reasons we are not able to help US citizens or Canadian residents other than in Ontario, Quebec, or Alberta. Best wishes for the future… You chose the following profile. If you made a mistake, please change here USA Country Switzerland Canada: Other than Ontario, Quebec, Alberta Canada: Ontario, Quebec or Alberta USA Other country Language Language English French German Italian I confirm Legal information This marketing document has been issued by Bank Syz Ltd. It is not intended for distribution to, publication, provision or use by individuals or legal entities that are citizens of or reside in a state, country or jurisdiction in which applicable laws and regulations prohibit its distribution, publication, provision or use. It is not directed to any person or entity to whom it would be illegal to send such marketing material. This document is intended for informational purposes only and should not be construed as an offer, solicitation or recommendation for the subscription, purchase, sale or safekeeping of any security or financial instrument or for the engagement in any other transaction, as the provision of any investment advice or service, or as a contractual document. Nothing in this document constitutes an investment, legal, tax or accounting advice or a representation that any investment or strategy is suitable or appropriate for an investor's particular and individual circumstances, nor does it constitute a personalized investment advice for any investor. This document reflects the information, opinions and comments of Bank Syz Ltd. as of the date of its publication, which are subject to change without notice. The opinions and comments of the authors in this document reflect their current views and may not coincide with those of other Syz Group entities or third parties, which may have reached different conclusions. The market valuations, terms and calculations contained herein are estimates only. The information provided comes from sources deemed reliable, but Bank Syz Ltd. does not guarantee its completeness, accuracy, reliability and actuality. Past performance gives no indication of nor guarantees current or future results. Bank Syz Ltd. accepts no liability for any loss arising from the use of this document. [The week in seven charts](https://blog.syzgroup.com/fast-food-for-thought/tag/the-week-in-seven-charts) ### ReArm Europe: the EU’s €800bn defence surge ReArm Europe’s €800bn defence plan is boosting European defense stocks while Germany’s historic debt move sends bond yields to their worst drop since 1990. Each week, the Syz investment team takes you through the last seven days in seven charts. [![Charles-Henry Monchau, CFA, CMT, CAIA](https://blog.syzgroup.com/hubfs/charles-2.jpg)](https://blog.syzgroup.com/fast-food-for-thought/author/charles-henry-monchau) [**Charles-Henry Monchau, CFA, CMT, CAIA**](https://blog.syzgroup.com/fast-food-for-thought/author/charles-henry-monchau) Chief Investment Officer **Monday, 03/10/2025** | - [![Pdf](https://blog.syzgroup.com/hubfs/pdf%20(1).png)](file:///C:/Users/awyneken/OneDrive%20-%20Banque%20Syz%20SA/Desktop/Syz-Feature_WeekIn7Charts_250310.pdf) - - - - #### Chart #1 — ## ReArm Europe: the EU's €800bn defence plan   At the heart of the ReArm Europe plan is a provision that would allow member states to increase defence spending significantly without triggering the Excessive Deficit Procedure (EDP) under the EU’s Stability and Growth Pact. The purpose of the pact created in 1997 was to ensure and enforce fiscal discipline within the EU, by requiring each member state to stay within certain limits of government debt (60 percent of GDP) and deficit (3 percent of GDP). By making an exemption for additional defence spending, the European Commission aims to create up to €650 billion in additional fiscal space over the next four years, but only if member states increase their defence spending by 1.5 percent of GDP on average. Additionally, the EU will provide €150bn in loans to member states for defence investments, aiming to oversee and better coordinate these investments. This joint procurement aims to cut costs, reduce fragmentation, increase interoperability, and strengthen Europe’s defence industry. The other proposals in the Rearm Europe plan include using the EU budget to direct more funds towards defence investments for example by creating incentives for member states to do so. Finally, the European Commission’s proposal aims to mobilise private capital by accelerating the Savings and Investment Union and utilising the European Investment Bank. In total, the package could mobilise up to €800bn for “a safe and resilient Europe,” von der Leyen said, before concluding that “Europe is ready to step up.” ![](https://blog.syzgroup.com/hs-fs/hubfs/image-png-Mar-10-2025-02-50-05-0077-PM.png?width=676&height=676&name=image-png-Mar-10-2025-02-50-05-0077-PM.png) Source: Statista --- #### Chart #2 — ## European defence stocks are skyrocketing With rising geopolitical tension and increased defence spending across Europe, EU defence stocks have gained significant attention. Governments are ramping up budgets, supply chains are strengthening, and long-term contracts are fuelling growth. Are valuations getting stretched or is there still room to run? Much will depend on policy commitments, NATO strategies, and the evolving security landscape. ![](https://blog.syzgroup.com/hs-fs/hubfs/image-png-Mar-10-2025-02-50-55-9081-PM.png?width=811&height=811&name=image-png-Mar-10-2025-02-50-55-9081-PM.png) Source: Koyfin --- #### Chart #3 — ## A historic daily change for the German 10-year yields on Wednesday   The new government in Germany is making history before even taking office with its massive debt plan. On Wednesday, German bonds had their worst day since 1990, with 10y yields jumping 30bps. ![](https://blog.syzgroup.com/hs-fs/hubfs/image-png-Mar-10-2025-02-55-21-0205-PM.png?width=940&height=536&name=image-png-Mar-10-2025-02-55-21-0205-PM.png) Source: HolgerZ, Bloomberg --- #### Chart #4 — ## Trump 2025: the longest first address to Congress in history President Trump delivered a 1 hour and 39-minute speech at his 2025 Joint Address to Congress, making it the longest first address in US history.  President Reagan’s 1981 speech lasted 32 minutes, President Clinton spoke for 60 minutes in 1993, President Obama went on for 51 minutes in 2009, and President Biden hit 64 minutes in 2021.  President Trump’s own 2017 address clocked in at 60 minutes. Now, he’s set a record, delivering a speech packed with policy, priorities, and unmistakable Trump energy. ![](https://blog.syzgroup.com/hs-fs/hubfs/image-png-Mar-10-2025-02-56-47-9648-PM.png?width=809&height=455&name=image-png-Mar-10-2025-02-56-47-9648-PM.png) Source: C-SPAN --- #### Chart #5 — ## The highest level of US tariffs since the Great Depression Tariffs have begun with 25% on Canada and Mexico, and 20% on China. In fact, tariffs could hit an average of 17.7% under President Trump. This would be the absolute highest levels seen since the Great Depression. ![](https://blog.syzgroup.com/hs-fs/hubfs/image-png-Mar-10-2025-02-57-37-4896-PM.png?width=860&height=614&name=image-png-Mar-10-2025-02-57-37-4896-PM.png) Source: Bravos Research --- #### Chart #6 — ## Tariff is the buzz word of the Q4 earnings season Roughly 80% of the stocks in the SP500 said the word “tariffs” on their last earnings call. ![](https://blog.syzgroup.com/hs-fs/hubfs/image-png-Mar-10-2025-02-58-19-9726-PM.png?width=765&height=938&name=image-png-Mar-10-2025-02-58-19-9726-PM.png) Source: Evan on X   --- #### Chart #7 — ## Global economic policy uncertainty is skyrocketing Economic policy uncertainty index based on news articles spiked to the highest on record. This exceeded the 2020 Crisis peak. US tariffs and deteriorating economy are among the major concerns and add to investors' angst. ![](https://blog.syzgroup.com/hs-fs/hubfs/image-png-Mar-10-2025-03-00-12-7212-PM.png?width=616&height=776&name=image-png-Mar-10-2025-03-00-12-7212-PM.png) Source: Global Markets Investor --- #### Disclaimer This marketing document has been issued by Bank Syz Ltd. It is not intended for distribution to, publication, provision or use by individuals or legal entities that are citizens of or reside in a state, country or jurisdiction in which applicable laws and regulations prohibit its distribution, publication, provision or use. It is not directed to any person or entity to whom it would be illegal to send such marketing material. This document is intended for informational purposes only and should not be construed as an offer, solicitation or recommendation for the subscription, purchase, sale or safekeeping of any security or financial instrument or for the engagement in any other transaction, as the provision of any investment advice or service, or as a contractual document. Nothing in this document constitutes an investment, legal, tax or accounting advice or a representation that any investment or strategy is suitable or appropriate for an investor's particular and individual circumstances, nor does it constitute a personalized investment advice for any investor. This document reflects the information, opinions and comments of Bank Syz Ltd. as of the date of its publication, which are subject to change without notice. The opinions and comments of the authors in this document reflect their current views and may not coincide with those of other Syz Group entities or third parties, which may have reached different conclusions. The market valuations, terms and calculations contained herein are estimates only. The information provided comes from sources deemed reliable, but Bank Syz Ltd. does not guarantee its completeness, accuracy, reliability and actuality. Past performance gives no indication of nor guarantees current or future results. Bank Syz Ltd. accepts no liability for any loss arising from the use of this document. Read More ## Related Articles [The week in seven charts](https://blog.syzgroup.com/fast-food-for-thought/tag/the-week-in-seven-charts) #### [Four years into the bull market](https://blog.syzgroup.com/fast-food-for-thought/four-years-into-the-bull-market?hsLang=en) Meanwhile, earnings growth, not valuation expansion, is doing the heavy lifting behind the S&P 500’s rally. Each week, the Syz investment team takes you through the last seven days in seven charts. **[Charles-Henry Monchau, CFA, CMT, CAIA](https://blog.syzgroup.com/author/charles-henry-monchau?hsLang=en)** | 12/10/2026 [The week in seven charts](https://blog.syzgroup.com/fast-food-for-thought/tag/the-week-in-seven-charts) #### [Is France’s sovereign debt heading towards “junk” territory?](https://blog.syzgroup.com/fast-food-for-thought/is-frances-sovereign-debt-heading-towards-junk-territory?hsLang=en) Meanwhile, what does Anthropic’s $2tn valuation assume about future growth? Each week, the Syz investment team takes you through the last seven days in seven charts. **[Charles-Henry Monchau, CFA, CMT, CAIA](https://blog.syzgroup.com/author/charles-henry-monchau?hsLang=en)** | 05/10/2026 [The week in seven charts](https://blog.syzgroup.com/fast-food-for-thought/tag/the-week-in-seven-charts) #### [The 10-year Treasury yield hits a 19-year high](https://blog.syzgroup.com/fast-food-for-thought/the-10-year-treasury-yield-hits-a-19-year-high?hsLang=en) Meanwhile, US earnings growth leaves the rest of the world behind. Each week, the Syz investment team takes you through the last seven days in seven charts. **[Charles-Henry Monchau, CFA, CMT, CAIA](https://blog.syzgroup.com/author/charles-henry-monchau?hsLang=en)** | 28/09/2026 ## Straight from the Desk # Syz the moment Live feeds, charts, breaking stories, all day long. 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