Incoming German Chancelor Merz:Outlines defense spending exemptions & spending initiatives

• Spending on civil protection, IT security, intelligence, aid to illegally attacked states will be exempt from debt brake beyond 1% of GDP as part of defense spending
• Germany’s states will get to spend some 16 billion euros extra through debt finance
• Special fund of 500 billion euros over 12 years to be created, of which 100 billion to be spent by states
• Climate and Transformation Fund will get 100 billion euros from the 500 billion euro fund
• This is a clear message to our enemies that we are ready to defend peace on our continent
• Expects vote to do these constitutional amendments on Tuesday
• Need to continue fiscal discipline. It remains important

Germany’s SPD leader:

• We have laid the foundation for Germany to get back on its feet and protect itself.
• This package is a powerful boost for Germany.

The defense pendulum is starting to shift more to Europe from the US.

This article was written by Greg Michalowski at www.forexlive.com.