Germany after voting This is a yeast, in view of the formation of A Major alliance And change of political leadership. Change it, which in the changing world, will also be a nmportant reflection on political elections. “A new Government headed by CDU/CSU Should be agreed quickly How to deal with structural weaknesses When the economy explains the Eco Swarta, who is an independent and public sector analyst, when dealing with the rapidly protected and contradictory trade and defense policy and defense. Rating the circle
At the moment it seems that it seems l’pd May be Single CDU/CSU Allied Partners Which should accelerate the formation of the government with the necessary agreements compared to the alternatives to the tripartite alliance with Green.
Loan node
“And Big deal According to which the SPDC agrees with the reforms requested by CDU and it agrees to take further advantage of it. Tax space“Basically, defense and investment can help improve Germany’s competitiveness and the chances of medium growth,” said Severe. Loan brake improvements Will be predicted by the German Constitution Demand, Since the three major Central Parties have just been held Under the majority Parliamentary Two -thirds It is necessary to change the constitution. In fact, any constitutional amendment will require the support of remote parties or far left links, both are reluctant to increase defense costs.
Defense weight
“Germany (AAA/Stable) should not only increase the panely margins in their budget due to the investment necessary to face the economy’s structural weaknesses, but also because Pressure to increase defense spending, Who hesitated to continue the Trump administration’s European security financing, “identified the analyst, and remembering that EU member countries in NATO Are assessing the possibility Increase Their commitment Defense costs 2 % to 3 % of GDP. This will leave many countries with a big budget deficit, which will weaken their credit profiles.
“Once Special fund For Germany’s defense costs, equal 100 billion eurosOr, by the end of 2026, its budget difference will be the largest in EU member states, equal About 13.8 % of the government’s income Central It faces about 5 % on the budget of Italy and France. Seavore explains that the purpose of 3 % has not been achieved since the Cold War era, and that more than a quarter of the current German budget has been developed for defense. Keep the purchase somewhere else or the tax increase does not appear to be extremely likely in the short term.
So the new government may have to rely on Special funds renewed, This will require an absolute majority of two -thirds of parliamentarians to approve. ” European joint financing Defense through the European Union, such as the European Union, or a new tool for creation.
Other steps: preferences
Except for an increase in defense spending, the new administration will face Demands the list of reforms priority: Establish a clear industrial strategy, modernize Germany’s energy infrastructure and implement expected reforms for some time TaxI Pension system And i Labor market. Together, these steps can be better Competitive Improve Germany’s economic, country growth chances and face the growing pressure on defense and welfare.
