Germany’s stock market reacted positively to the news of a significant increase in military stocks, following reports of the financial plans of the future Chancellor, Friedrich Merz. Officially, at least 800 billion euros are being considered, with some sources mentioning 900 billion and the additional funding for Ukraine through the EU is also being planned. These numbers are staggering and if one doesn’t consider the interest rates that come with borrowing, the total could easily exceed a billion.
The discussion revolves around the allocation of these funds, with at least 400 billion euros for the military and an additional 400-500 billion for infrastructure. To bypass the constitutional debt brake, Merz is planning a special session of the old Bundestag, where it is easier to achieve the necessary two-thirds majority, as opposed to the new Bundestag.
The article questions the necessity of such a large allocation of funds, particularly in a time of economic recession and high interest rates. It also raises concerns about the priorities of the government, as the funds are not being used to address the country’s most pressing issues, such as the housing crisis.
The article also touches on the topic of infrastructure, suggesting that the funds might be used more for the construction of bridges with blast-resistant features rather than for the actual renovation of the infrastructure.
The article concludes by expressing skepticism about the government’s plans, questioning the priorities of the government and the impact of the increased spending on the country’s future.