Germany’s €500B Defense-Infrastructure Plan Sparks “Historic Shift”

Germany’s €500B Defense-Infrastructure Plan Sparks “Historic Shift”

Deutsche Bank declares Germany’s €500 billion defense and infrastructure funding deal a postwar “paradigm shift,” ending fiscal caution amid U.S. aid cuts and security threats.

The agreement suspends debt rules to boost defense spending above 1% of GDP and upgrade transport and energy networks.

Chancellor Merz seeks a two-thirds majority by March 20 to bypass far-left and far-right opposition.

Bond yields rose on fiscal risks, while the euro climbed. Critics claim Merz sidelined rivals, but allies call it vital for security.