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'A really big bazooka': German defense spending likely to rise after parties agree historic debt change


//stocks-investing.news-articles.net/content/202 .. se-after-parties-agree-historic-debt-change.html
Published in Stocks and Investing on Wednesday, March 5th 2025 at 19:21 GMT by CNN   Print publication without navigation

  • The parties hoping to form Germany's next government have agreed to overhaul borrowing rules and create a
  • 500 billion ($536 billion) infrastructure fund in a tectonic spending shift to revamp the military and revive growth in Europe's largest economy.

The article from CNN discusses Germany's plan to overhaul its debt rules to boost defense spending. Amidst rising geopolitical tensions, particularly with Russia, Germany aims to increase its military budget to meet NATO's target of spending 2% of GDP on defense. The current debt brake, which limits the federal deficit to 0.35% of GDP, has been a significant barrier to increasing military expenditures. The proposed changes would allow for more flexible borrowing, especially in times of crisis or for investments deemed critical to national security. This move has sparked debate, with critics arguing it could lead to uncontrolled debt, while supporters see it as necessary for Germany to fulfill its NATO commitments and address security threats effectively. The overhaul is part of a broader discussion on how Germany can balance fiscal responsibility with the urgent need to strengthen its defense capabilities.

Read the Full CNN Article at:
[ https://www.cnn.com/2025/03/05/business/germany-debt-overhaul-defense-spending-intl/index.html ]

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