Archive: https://archive.is/20250304200800/https://www.ft.com/content/316ef73e-cf54-4d38-af5b-7166c684a13a
A provision would exempt defence spending above 1 per cent of GDP from the debt brake rules, allowing Germany to boost spending on its armed forces by an unlimited amount at a time when Europe faces the prospect of losing US guarantees that have underpinned its security since Donald Trump began his second presidential term.
The future coalition partners will introduce another constitutional amendment to set up a €500bn fund for infrastructure, which would run over 10 years. They are also planning to loosen debt rules for states.
I mean, one can complain about the specifics, but I’m pretty sure that there has to be some kind of mechanism to permit for higher defense spending, at least in time of conflict or impending conflict.
Let me go back and dig up spending as a percent of GDP for World War II, but it was way, way above 1% of GDP. Without some mechanism, a country would be simply unable to fight in a major war.
kagis
Okay, here:
EDIT: I have to admit that while I don’t think I’ve ever looked up Japan specifically before, I am very surprised that Japan’s percentage is lower than most other powers. I wonder if it had something to do with collapsing GDP due to destruction of the merchant fleet coupled with having to spend a fixed amount on the basic necessities, like food production, or something like that.
The Main Problem is, that the CDU has no Incentive to di anything useful. They forced the last government to work with a reduced amount of money, which caused the government to collapse, but at the same time they want to get the cheers for investing into stuff. They dont want to kill the debt break so that they can excerpt pressure onto the coming governments if they aren’t part of it.
People here don’t complain about the military spending. People complain about the absolute dishonesty of Merz who campaigned on no new debt spending whatsoever right until election day. Everybody who watched a bit more closely than Merz’ voters knew this was a complete lie. Multiple economic institutes as well as his Social Democratic/Greens/Left Party rivals called out his tactics as a lie before the election.
And there’s a second bit, which is that CxU has a bit of a faible for lining their own pockets. Merz with his chemical industry connections and his lack of any morality whatsoever is promising to bring that out in full force where Merkel banished that dynamic down to row 2 and below.