Germany Set for Massive Rearmament as Divide With US Widens

News24 Business | ANALYSIS | Tanks not cars: how a pivot to defence could help Germany's economy

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

A brutal sell-off swept through global bond markets this week after the next German government committed to a trillion-euro military and infrastructure spending package. The loan-backed package is helping Germany's economy recover, but it is making government and corporate lending more expensive globally.

In case a challenge were not enough — like supporting Ukraine in the midst of Hurricane Trump — the extraordinary European Council of last day 6 proclaimed the willingness of the Twenty-Seven (including Hungary and Slovakia) to definitively activate the process to achieve, in the words of the next German Chancellor, Friedrich Merz, independence from the United States in terms of security and defence, before letting itself be carried away by the …

The future German Chancellor does not want to lose a minute. Stuck by the announced disengagement of the United States in the defence of Europe, the Federal Republic has made a double turn at 180 degrees, abandoning budgetary rigour to build a real army.

In Germany, before the formation of a new government, the Union and SPD have agreed on groundbreaking financial decisions. The aims of the unprecedented measures are to strengthen the defence capacity and necessary investments in infrastructure.

Can Germany spend its way out of industrial decline?

Chancellor-to-be Friedrich Merz wants to expand investment in defence and infrastructure. The race to re-arm could be a much-needed boost for manufacturing