Tom Haas Warns of a Budget “Hole” – Pensions, Taxes, and the Cost of Defense Are Closing In

On the eve of the Economy Day, PwC boss François Mousel and Statec director Tom Haas sat down for a chat. The topic? How Luxembourg can turn the return of war and European rearmament into a business opportunity. Between admitting that Europe has been a freeloader on US defense spending and worrying about a future budget “hole,” the message is clear: the old world is crumbling, and Luxembourg’s financial center is ready to pick up the pieces—provided the EU can finally get its act together. François Mousel Admits Europe Was a Free Rider, We Funded the US Deficit While Criticizing Their Wars François Mousel kicks off by dismantling the myth of European innocence. He points out that while European governments spent less on defense, the European private sector—especially institutional investors and pension funds—pumped massive amounts of capital into US debt. This, he says, indirectly financed America’s military machine. “It was a fairly comfortable situation,” Mousel notes: Europeans got to criticize the US while enjoying the protection and financial returns. But that party is over. The question now, according to Mousel, is what role Europe wants to play and how to pay for it. This isn’t just about tanks; it’s about [...]

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