Europe’s €500B Infrastructure Plan Boosts Defense Index by 35%
Europe’s MSCI Aerospace & Defense Index jumped 35% over the past year as governments prepare for next-generation warfare and €500 billion infrastructure spending. UBS’s non-defense investment basket surged nearly 50% since March 2025 and Goldman’s renewable energy basket gained roughly 75%, with JPMorgan Asset Management highlighting accelerated self-reliance investments.
1. European Defense and Infrastructure Rally
Europe’s MSCI Europe Aerospace and Defense Index has climbed roughly 35% over the past year as governments commit to next-generation warfare capabilities and a €500 billion infrastructure program.
2. Investment Baskets Surge
Non-defense assets tracked by a UBS basket have gained nearly 50% since March 2025, while a Goldman Sachs renewable energy basket surged about 75% on EU investment in green energy, grid modernization, battery storage and hydrogen.
3. JPMorgan Asset Management’s Outlook
JPMorgan Asset Management highlights that accelerated self-reliance investments in defense, energy and critical infrastructure are reshaping market leadership, with energy, materials, utilities and industrials among top performers so far in 2026.