Take it away and you've not just got 100,000 soldiers or so out of a job, but everyone employed to make their kit, cook their food, sell them beer on a night out, cut their hair... there are better economists than me here, but I can't think that there are many better ways of stimulating the economy than military spending, given soldiers' general spending habits.
Even so, with Erdo and Davu we will soon not have any serious standing army (or country) on the other side anyway, so we will more than gladly stop maintaining our own one as well ^^
Although Erdo may call for reinforcements from Cuba.