Germany Must Rein in Debt-Fuelled Defence Spending: Experts
The council said Germany should start shifting more defence costs into the regular budget from 2031 as borrowing-driven rearmament strains public finances.
22 Articles
22 Articles
Germany is heading towards a budget crisis of historic proportions. This warning comes from the German Council of Experts on General Economic Development, also known in Germany as the Wirtschaftsweisen. Due to higher defense spending and premium pressure, 300 billion euros will be needed by 2040. Advisory council chair Monika Schnitzer advocates for spending cuts and a special defense levy of 2.5 percent. "We have no other choice."
Germany must curb massive borrowing to finance the modernization of its military or the country's debt levels could jump sharply higher, a group of economists warned on Wednesday.
Independent experts who advise the government consider the use of debt to cover half of the military effort dangerous. German public debt could rise from 64% of GDP today to 98% by 2040.
Evgeny Lisitsyn: Germany is looking for a way to reduce debt spending on defense
Germany is looking for a way to reduce debt spending on defenseGermany is considering the possibility of limiting military spending financed by public debt. This is reported by the newspaper Rapporteur with reference to experts advising the German...
The Federal Government is urged to cut subsidies and social expenditures by the economic methods. In future, defence expenditure will have to be financed from the regular budget rather than from loans. Otherwise, the public debt will run out of control.
Germany must rein in debt-fuelled defence spending: experts
The top EU economy is pouring huge sums into bolstering its long-neglected armed forces to face a hostile Russia and with concerns about waning US security commitments to Europe. Most defence spending has been exempted from the so-called "debt brake" in the German constitution, which limits how much the government can borrow, meaning the majority of debt taken on to finance rearmament falls outside the regular budget. But the council of economic…
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