Europe weighs options to boost defence spending
1 month ago

Europe weighs options to boost defence spending

Live Mint  

Europe will likely have to spend hundreds of billions of euros to prepare to defend itself militarily without U.S. help, and will also have to find ways to do that without spooking bond investors. Burilkov and Wolff calculate that it would cost around 250 billion euros annually to raise European defense spending to 3.5% of gross domestic product from around 2% now. Their proposal is to rework the rules to exempt all spending that closes the gap between 2% of GDP now and whatever target European governments eventually agree on for defense budgets, and through 2032. Analysts at the Scope ratings agency calculate Spain’s government would have to devote around 8.8% of tax revenues to raise spending from the current level of 1.3% of GDP, while Belgium would have to devote close to 7% of tax revenues to close a similar gap. “Some mutualization of defense expenditure at the European level is a good idea if it allows for more efficient defense spending," Wunsch said.

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History of this topic

German parliament approves Merz’s radical spending plan that is making EU nervous
4 days, 16 hours ago

German parliament approves Merz’s radical spending plan that is making EU nervous

Firstpost  

While many of German allies have welcomed Berlin’s focus on rebuilding its military, especially in the wake of the change of guards in Washington DC, some are anxious about the impact it may have on the German economy as well as that of its neighbours Germany’s likely next chancellor Friedrich Merz overcame a major hurdle Friday to loosen debt rules …

EU does hasty reset of definition of defence spending
5 days, 21 hours ago

EU does hasty reset of definition of defence spending

Hindustan Times  

* EU does hasty reset of definition of defence spending New definition needed as spending caps eased * 'Defence-relevant' items will qualify * But some countries want broader scope By Jan Strupczewski BRUSSELS, - When do state investments in arms factories, or the wages of tank crews and pilots not count as defence spending? On Thursday, EU leaders will study …

Germany’s €1 trillion gamble: A new era for defence, debt and Europe?
6 days, 1 hour ago

Germany’s €1 trillion gamble: A new era for defence, debt and Europe?

Firstpost  

Germany is set to relax its strict constitutional debt limits, enabling a €1 trillion investment in defence and infrastructure. This move, discussed at the Firstpost ‘Ideas Pod’ at the Raisina Dialogue, signals a major shift in fiscal policy with significant implications for economic growth, European security and political stability German opposition leader and Christian Democratic Union party chairman Friedrich Merz …

German parties agree deal to loosen debt limit, expand defense spending as Europe called to do more
1 week, 4 days ago

German parties agree deal to loosen debt limit, expand defense spending as Europe called to do more

Associated Press  

BERLIN — German lawmakers reached an agreement on Friday to exempt some defense spending from the nation’s tight rules on running up debt as European leaders are scrambling to shore up the continent’s defenses themselves in the face of a Trump administration that is threatening to back out. The group seeks to loosen Germany’s so-called “debt brake” — which allows …

Support for expanding Dutch defense industry grows amid rising global tensions
2 weeks ago

Support for expanding Dutch defense industry grows amid rising global tensions

NL Times  

A growing number of Dutch citizens favor increased defense spending and expanded military infrastructure within the country, according to a new poll. The survey, conducted by Hart van Nederland among 2,081 respondents, found that 62 percent now support raising military expenditures beyond the NATO benchmark of 2 percent of gross domestic product, nearly doubling from 33 percent in September 2024. …

US bolsters position as world’s top arms exporter
2 weeks, 1 day ago

US bolsters position as world’s top arms exporter

Live Mint  

American defense companies have increased their dominance of the global arms trade, buoyed by European nations snapping up U.S. jet fighters and missiles. The Sipri data show how the U.S. arms industry has been the key beneficiary of rising European defense budgets in the wake of Russia’s invasion of Ukraine and as President Trump pushes the region to increase military …

NATO’s Rutte Urges Defense Contractors to Ramp Up, Welt Says
2 weeks, 2 days ago

NATO’s Rutte Urges Defense Contractors to Ramp Up, Welt Says

Live Mint  

-- NATO Secretary General Mark Rutte said that increased defense budgets by European governments were the first step in securing the continent and that contractors need to play their part by increasing output. “We also need to quickly ramp up our defense production,” Rutte said in an interview with German newspaper Welt am Sonntag. At an emergency meeting in Brussels …

Europe’s reliance on US weapons has risen, SIPRI says
2 weeks, 2 days ago

Europe’s reliance on US weapons has risen, SIPRI says

Al Jazeera  

But markets believe the continent is about to experience a boost in domestic production as Russia’s threat looms. Europe’s imports of weapons made by the United States have skyrocketed in the past five years, raising serious questions about whether the continent can achieve its vaunted goal of defence autonomy. Europe’s ability to build its own weapons will materially affect how …

EU leaders back new plan to increase defence expenditure amid change in US foreign policy
2 weeks, 5 days ago

EU leaders back new plan to increase defence expenditure amid change in US foreign policy

Firstpost  

European Union leaders agreed on a new defence plan for Europe. EU leaders back new plan to increase defence expenditure amid change in US foreign policy. File Image/Reuters European Union leaders at an emergency summit in Brussels on Thursday agreed on a new defence plan for Europe. Under the new plan, the leaders sought to allocate billions of euros for …

European Commission chief proposed €150 bn defence fund, now markets wait for EU war bonds
2 weeks, 5 days ago

European Commission chief proposed €150 bn defence fund, now markets wait for EU war bonds

Firstpost  

As European Union is planning to raise €150 billion to boost the continent’s defences, markets as well as defence contractors have started looking forward to the issuance of EU war bonds After European Commission President Ursula von der Leyen announced plans to raise €150 billion to boost defences in the wake of unprecedented Russian aggression and US withdrawal from the …

Germany, once a beacon of frugality, jolts Europe with planned spending splurge
2 weeks, 5 days ago

Germany, once a beacon of frugality, jolts Europe with planned spending splurge

Live Mint  

Few changes prompted by President Trump’s second term could be as consequential for Europe as Germany shedding fiscal prudence to turbocharge its military and retool its economy. From now on, Germany’s famously strict fiscal rules, Merz said, would no longer apply to military spending, paving the way for a rapid acceleration in the country’s rearmament. If approved, the fiscal U-turn …

French fiscal woes crimp Macron’s defence spending plans
2 weeks, 6 days ago

French fiscal woes crimp Macron’s defence spending plans

Live Mint  

By Leigh Thomas PARIS - President Emmanuel Macron wants to build up French defence spending as Washington threatens to pull its European security guarantee, but funding those plans as his government struggles to tame an unruly deficit won't be easy. "France is heading towards difficult budgetary trade-offs to reconcile the government's commitment to lower budget deficits while increasing defence spending," …

Tanks not cars: how a pivot to defence could help Germany's economy
2 weeks, 6 days ago

Tanks not cars: how a pivot to defence could help Germany's economy

The Hindu  

German defence companies seeking more capacity as Europe prepares to raise military spending are eyeing the ailing car industry, the first sign of a shift that could help revive the continent's biggest economy after two years of contraction. The Bruegel think-tank estimates Europe may need 300,000 additional troops and a short-term annual increase in defence spending of at least 250 …

As Trump roils stock markets, investors are betting big on Europe’s defence
3 weeks ago

As Trump roils stock markets, investors are betting big on Europe’s defence

Al Jazeera  

European defence stocks are flying high as Trump’s pause on aid to Ukraine spurs calls for continent’s rearmament. With Trump’s outreach to Russia and his suspension of military aid to Ukraine raising doubt about US commitment to Europe’s security, European leaders are racing to ramp up defence spending. Despite rising by nearly one-third from 2021 to 2024, the European Union’s …

‘Rearm Europe’: EU chief proposes $158 bn common defence fund to boost military spending
3 weeks ago

‘Rearm Europe’: EU chief proposes $158 bn common defence fund to boost military spending

Firstpost  

The European Commission on Tuesday proposed a new joint EU borrowing initiative of €150 billion to provide loans to EU governments for defence, as part of a broader €800 billion effort to enhance Europe’s defense capabilities, according to a report European Commission President Ursula von der Leyen on Tuesday proposed a new initiative aimed at increasing military spending across the …

EU Commission proposes 800-billion-euro defence plan
3 weeks ago

EU Commission proposes 800-billion-euro defence plan

Hindustan Times  

BRUSSELS -The European Commission proposed on Tuesday new joint EU borrowing of 150 billion euros to lend to EU governments for defence as part of an overall 800 billion total financing effort to boost Europe's defence capabilities. EU Commission proposes 800-billion-euro defence plan The 150 billion euros of new joint borrowing is to go towards building pan-European capability domains like …

EU weighs $841bn ‘rearm’ Europe plan to counter possible US disengagement
3 weeks, 1 day ago

EU weighs $841bn ‘rearm’ Europe plan to counter possible US disengagement

Al Jazeera  

European Commission President Ursula von der Leyen has proposed a five-part plan to mobilise some 800bn euros to beef up Europe’s defence and provide “immediate” military support to Ukraine after the United States suspended aid. “A new era is upon us,” the president said in a letter presenting the plan to 27 European Union leaders on Tuesday, two days before …

Markets eye new wave of joint European bonds in rush to boost defence
3 weeks, 5 days ago

Markets eye new wave of joint European bonds in rush to boost defence

The Hindu  

Big investors are sensing that a fresh joint European borrowing effort is becoming more likely as the region scrambles to ramp up defence spending. The modest reaction across bond markets, typically unnerved by higher spending, as defence talks gathered pace this month suggests investors view increased borrowing as manageable so far. Some analysts reckon even Germany, which will face a …

Trump meets Starmer: Is the UK’s increase in defence spending enough?
3 weeks, 6 days ago

Trump meets Starmer: Is the UK’s increase in defence spending enough?

Al Jazeera  

The British leader says foreign aid will suffer a 40 percent cut to bolster defence spending in light of a ‘new era’. British Prime Minister Keir Starmer has announced the country will increase defence spending by cutting its foreign aid budget, a move he says is necessary as the United Kingdom faces a “dangerous new era”. Starmer said on Tuesday …

Europe cannot sustain 100,000-strong Ukraine peacekeeping force, former British army chief warns
3 weeks, 6 days ago

Europe cannot sustain 100,000-strong Ukraine peacekeeping force, former British army chief warns

The Independent  

Sign up for the View from Westminster email for expert analysis straight to your inbox Get our free View from Westminster email Get our free View from Westminster email SIGN UP I would like to be emailed about offers, events and updates from The Independent. “If we send troops, they will be tested, and they have to robustly be able …

Markets eye new wave of joint European bonds in rush to boost defence
3 weeks, 6 days ago

Markets eye new wave of joint European bonds in rush to boost defence

Live Mint  

* Bond markets calm in face of potential funding surge * Odds of joint borrowing seen higher than late last year * Growth impact of defence spending will be critical - Goldman By Yoruk Bahceli LONDON, Feb 26 - Big investors are sensing that a fresh joint European borrowing effort is becoming more likely as the region scrambles to ramp …

UK increases defence spending amid US pressure: Where do European nations stand?
3 weeks, 6 days ago

UK increases defence spending amid US pressure: Where do European nations stand?

Firstpost  

Facing pressure from US President Donald Trump, British Prime Minister Keir Starmer declared that the defence spending would be hiked to 2.5 per cent of the GDP by 2027, an increase of 0.2 per cent. British Prime Minister Keir Starmer said he would increase annual defence spending to 2.5 per cent of gross domestic product by 2027. Standing up in …

UK politics live: Reeves urges Europe to ‘step up’ defence spending as PM vows 2.5% commitment
3 weeks, 6 days ago

UK politics live: Reeves urges Europe to ‘step up’ defence spending as PM vows 2.5% commitment

The Independent  

Rachel Reeves has urged European countries to follow the UK’s lead and increase defence spending Sign up for the View from Westminster email for expert analysis straight to your inbox Get our free View from Westminster email Get our free View from Westminster email SIGN UP I would like to be emailed about offers, events and updates from The Independent. …

Starmer commits to boost defence spending to 2.5% of GDP by 2027 on eve of US trip
1 month ago

Starmer commits to boost defence spending to 2.5% of GDP by 2027 on eve of US trip

Firstpost  

Prime Minister Keir Starmer said on Tuesday he would increase annual defence spending to 2.5% of GDP by 2027 and target a 3% level last seen just after the Cold War, a signal to US President Donald Trump that Britain can boost Europe’s security Prime Minister Keir Starmer said on Tuesday he would increase annual defence spending to 2.5% of …

U.K. to increase defence spending to 2.5% of GDP during 2027
1 month ago

U.K. to increase defence spending to 2.5% of GDP during 2027

The Hindu  

The U.K. government will increase its defence spending to 2.5% of GDP during 2027 and maintain that level annually, up from the current level of 2.3%, U.K. Prime Minister Keir Starmer told the House of Commons on Tuesday. “I can announce that this government will begin the biggest sustained increase in defence spending since the end of the Cold War,” …

Starmer commits to raise UK defense spending to 2.5% of GDP by 2027
Top News
1 month ago

Starmer commits to raise UK defense spending to 2.5% of GDP by 2027

Associated Press  

LONDON — Prime Minister Keir Starmer committed to raise U.K. defense spending to 2.5% of gross domestic product by 2027, saying Tuesday that Europe is in a new and insecure era. The U.K. spends 2.3% of gross domestic product on defense, and the government had previously set a 2.5% target, without setting a date. The announcement comes as European countries …

Keir Starmer vows to slash aid spending to pump 2.5% of GDP into defence by 2027 in dramatic statement to MPs ahead of 'mission impossible' trip to meet Trump in White House
1 month ago

Keir Starmer vows to slash aid spending to pump 2.5% of GDP into defence by 2027 in dramatic statement to MPs ahead of 'mission impossible' trip to meet Trump in White House

Daily Mail  

Keir Starmer pledged to slash aid spending to boost defence today as he braces for a crucial trip to meet Donald Trump and try to repair Western ties. Keir Starmer is gathering his Cabinet as he braces for a crucial trip to meet Donald Trump and try to repair Western ties Mr Trump used an awkward meeting with Emmanuel Macron …

UK to hike defence spending and cut aid budget, Starmer says
1 month ago

UK to hike defence spending and cut aid budget, Starmer says

Al Jazeera  

British prime minister Keir Starmer’s announcement comes prior to his trip to the United States later this week. The United Kingdom will increase its annual defending spending to 2.5 percent of GDP by 2027, Prime Minister Keir Starmer has said, signalling the UK’s efforts to boost Europe’s security. On the eve of his departure to meet US President Donald Trump …

Report: Amount Europe needs to spend on military without US support
1 month ago

Report: Amount Europe needs to spend on military without US support

Daily Mail  

The huge amount that Europe would need to spend to protect itself from Russia without support from the US has been revealed. The study estimates that the EU and its member states would need to increase defense spending by an extra €250 billion per year - raising total military expenditure from the current 2 percent of GDP to at least …

Europe can’t count on the US to be its bodyguard. That’s great for its defense companies
1 month ago

Europe can’t count on the US to be its bodyguard. That’s great for its defense companies

CNN  

London CNN — A stark new reality in Europe — that its long-time ally and security guarantor, the United States, may not come to its rescue in a future war — has set the stage for a faster ramp-up in military spending on the continent. “I’ve been in and around defense for a long time, and I’ve never seen anything …

Europe can’t count on the US to be its bodyguard. That’s great for its defense companies
1 month ago

Europe can’t count on the US to be its bodyguard. That’s great for its defense companies

CNN  

London CNN — A stark new reality in Europe — that its long-time ally and security guarantor, the United States, may not come to its rescue in a future war — has set the stage for a faster ramp-up in military spending on the continent. “I’ve been in and around defense for a long time, and I’ve never seen anything …

How Europe has been preparing for WIII – and why Britain isn’t ready
1 month ago

How Europe has been preparing for WIII – and why Britain isn’t ready

The Independent  

More than 1,500km from London, frenetic activity is underway in the countryside of Poland, Finland, and the Baltic States: bulldozers and diggers are constructing field defences. Poland is spending at least €2.5bn on its border defence system, including building a sky shield system akin to Israel’s “Iron Dome” to protect its eastern border from a growing threat from Russia. While …

Denmark announces plans to bolster its defense spending and raise it above 3% of GDP
1 month ago

Denmark announces plans to bolster its defense spending and raise it above 3% of GDP

The Independent  

For free real time breaking news alerts sent straight to your inbox sign up to our breaking news emails Sign up to our free breaking news emails Sign up to our free breaking news emails SIGN UP I would like to be emailed about offers, events and updates from The Independent. Read our privacy policy The Danish government on Wednesday …

Denmark announces plans to bolster its defense spending and raise it above 3% of GDP
1 month ago

Denmark announces plans to bolster its defense spending and raise it above 3% of GDP

Associated Press  

COPENHAGEN, Denmark — The Danish government on Wednesday announced plans to bolster its military by setting up a 50 billion-kroner fund that it says will raise the country’s defense spending to more than 3% of gross domestic product this year and next. This sends a clear signal to all our allies that we understand the security challenges – and that …

Can Britain afford to spend much more on defence?
1 month, 1 week ago

Can Britain afford to spend much more on defence?

The Independent  

Keir Starmer has declared that Europe is “facing a once-in-a-generation moment for the collective security of our continent”. He has called on European nations to increase defence spending: “Non-US Nato nations have already increased defence spending by 20 per cent in the past year, but we must go further.” President Donald Trump, to the alarm of many, has suggested the …

Invest in Europe's defence: These stocks are soaring as the US market plunges and investors pile in. Now our experts pick the ones that might make you a FORTUNE
1 month, 1 week ago

Invest in Europe's defence: These stocks are soaring as the US market plunges and investors pile in. Now our experts pick the ones that might make you a FORTUNE

Daily Mail  

European defence stocks are soaring once again as the continent's leaders vow to boost military spending after Donald Trump warned he would 'not put up with' Volodymyr Zelensky for much longer. Matt Dorset, equity analyst at Quilter Cheviot, said that 'BAE's scale, relationships, and diverse range of products provide a clear opportunity to capture increased demand from higher European defence …

ANDREW NEIL: This is a watershed in Europe's history. For decades we have lavished billions on welfare and sent the bill for our defence to America - and Trump simply won't let that continue
1 month, 1 week ago

ANDREW NEIL: This is a watershed in Europe's history. For decades we have lavished billions on welfare and sent the bill for our defence to America - and Trump simply won't let that continue

Daily Mail  

President Macron will host an emergency summit of European leaders in Paris today in an attempt to marshal a united response to the defence and security crisis now engulfing Europe. US Vice President JD Vance stunned the Munich Security Conference by warning that various official attacks on free speech across Europe, including in Britain, undermined the US-European shared commitment to …

The US thinks Europe isn’t pulling weight on Nato – but how much are countries spending on defence?
1 month, 1 week ago

The US thinks Europe isn’t pulling weight on Nato – but how much are countries spending on defence?

The Independent  

For free real time breaking news alerts sent straight to your inbox sign up to our breaking news emails Sign up to our free breaking news emails Sign up to our free breaking news emails SIGN UP I would like to be emailed about offers, events and updates from The Independent. While the majority of Nato allies were predicted to …

Labour’s defence budget ‘won’t touch the sides’, Starmer is warned
1 month, 1 week ago

Labour’s defence budget ‘won’t touch the sides’, Starmer is warned

The Independent  

Sign up for the View from Westminster email for expert analysis straight to your inbox Get our free View from Westminster email Get our free View from Westminster email SIGN UP I would like to be emailed about offers, events and updates from The Independent. But even if there is an urgent push to boost spending, there is said to …

From Poland’s ‘iron dome’ to boots on the ground: How Europe is preparing for the Third World War
1 month, 1 week ago

From Poland’s ‘iron dome’ to boots on the ground: How Europe is preparing for the Third World War

The Independent  

More than 1,500km from London, frenetic activity is underway in the countryside of Poland, Finland, and the Baltic States: bulldozers and diggers are constructing field defences. Poland is spending at least €2.5bn on its border defence system, including building a sky shield system akin to Israel’s “Iron Dome” to protect its eastern border from a growing threat from Russia. While …

Defence Secretary John Healey STILL won't say when UK's military spending will rise to 2.5% of GDP - despite Trump demanding 5% and planning to abandon European allies
1 month, 1 week ago

Defence Secretary John Healey STILL won't say when UK's military spending will rise to 2.5% of GDP - despite Trump demanding 5% and planning to abandon European allies

Daily Mail  

John Healey has repeatedly refused to say when the UK will increase its defence spending, despite Donald Trump's US planning to abandon its allies in Europe. The Defence Secretary was asked seven times if he would set out a timeline to Britain hitting a baseline of 2.5 per cent of GDP or more, but declined to do so, in an …

New report says Russia is better able to withstand heavy battlefield losses than Ukraine
1 month, 1 week ago

New report says Russia is better able to withstand heavy battlefield losses than Ukraine

Associated Press  

LONDON — Russia’s stockpiles of Cold War-era weapons and larger population have allowed it to withstand heavy battlefield losses in Ukraine as the West fails to provide Ukraine the aid needed to mount a counteroffensive, according to an annual review of the global military situation. “While Ukraine has proved its ability to resist Russia’s invasion in the air, land and …

NO NATO membership, NO return to pre-2014 borders and NO more relying on US: America's bombshell blow to Ukraine as Trump agrees to begin negotiations with Putin immediately
1 month, 1 week ago

NO NATO membership, NO return to pre-2014 borders and NO more relying on US: America's bombshell blow to Ukraine as Trump agrees to begin negotiations with Putin immediately

Daily Mail  

America will no longer front the lion's share of aid to Ukraine, the Trump administration said today in a devastating blow to Kyiv that will pile pressure on Europe to fill the void. Defense Secretary Pete Hegseth said that Washington will 'no longer tolerate an imbalanced relationship' with its allies, adding that 'Europe must provide the overwhelming share of future …

EU leaders to huddle on defence against Russia and handling Trump
1 month, 3 weeks ago

EU leaders to huddle on defence against Russia and handling Trump

Hindustan Times  

* EU leaders to huddle on defence against Russia and handling Trump NATO's Rutte and UK's Starmer to join Brussels talks * Focus on transatlantic ties, boosting European defences * Europe under pressure to rely less on US for protection * Leaders to talk capabilities, cooperation and funding By Andrew Gray BRUSSELS, - European Union leaders gather on Monday to …

EU countries call for European Investment Bank to push into defence funding
1 month, 3 weeks ago

EU countries call for European Investment Bank to push into defence funding

Live Mint  

By Jan Strupczewski BRUSSELS, Jan 31 - Nineteen European Union countries, including France and Germany, are calling for the European Investment Bank to boost lending for the defence industry as the 27-nation EU seeks ways to improve its military against a possible future Russian attack. The call in a joint letter comes before EU leaders' talks on Monday on the …

How much should Britain really be spending on defence?
1 month, 3 weeks ago

How much should Britain really be spending on defence?

The Independent  

Pressure, domestic and external, is growing on the government to increase defence spending markedly. Yesterday, the secretary general of Nato, Mark Rutte, called for member states to push their target beyond the 2 per cent of GDP set back in 2006, in the light of far greater international challenges. The most ministers will offer is that the “path” to the …

Europe Is Pouring Money Into Defense. Is It Enough?
2 months ago

Europe Is Pouring Money Into Defense. Is It Enough?

New York Times  

Europe Is Pouring Money Into Defense. for European NATO members Denmark 1995 2022 Germany Finland France Portugal Lithuania Norway Spain Slovenia Belgium Netherlands Sweden Slovakia Italy Lithuania Czech Rep. Poland Estonia Greece Bulgaria Romania Latvia Hungary 40% of G.D.P. 50% 60% Denmark 1995 2022 Germany Finland France Portugal Lithuania Norway Spain Slovenia Belgium Netherlands Sweden Slovakia Italy Lithuania Czech Rep. …

EU must boost defence spending to counter Russia’s threat, says Kallas
2 months ago

EU must boost defence spending to counter Russia’s threat, says Kallas

Al Jazeera  

The top EU diplomat has said that EU members do not spend enough on defence. Russia is posing an existential threat to the European Union’s security and the only way to address that is to increase spending on defence, the European Union’s foreign policy chief Kaja Kallas said. Kallas’s rallying cry was the latest in a slew of increasingly alarming …

Lithuania vows to boost defense spending to 5-6% of GDP, citing the threat of Russian aggression
2 months, 1 week ago

Lithuania vows to boost defense spending to 5-6% of GDP, citing the threat of Russian aggression

Associated Press  

VILNIUS, Lithuania — Lithuania has decided to raise its spending on defense to between 5% and 6% of overall national economic output starting in 2026 due to the threat of Russian aggression in the region, Lithuanian President Gitanas Nausėda said Friday. “We need to increase our efforts to strengthen defense and deterrence significantly, devoting more resources to this end.” The …

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