Germany's Coalition Talks Eye €1 Trillion for Military, Infrastructure

Germany's conservative CDU/CSU and the Social Democrats (SPD) are in coalition talks focused on a significant borrowing program of nearly €1 trillion aimed at enhancing military and infrastructure spending. Incoming Chancellor Friedrich Merz is pushing for this initiative amid rising geopolitical tensions and the need for a stronger European defense strategy, particularly in light of U.S. policy shifts under President Donald Trump. The proposed financial measures include €400 billion for the military and €500 billion for infrastructure, which would collectively represent about 20% of Germany's GDP. The urgency for these expenditures has been underscored by recent events in Ukraine and calls for Europe to assume greater responsibility for its own defense. Both parties are seeking to expedite the approval of these funds before the new Bundestag convenes, with discussions taking place in the outgoing parliament. Analysts anticipate a significant impact on Germany's economy and its role within the EU as these plans unfold.