Germany's Conservatives, SPD Meet for Talks on Coalition as Major Spending Hike Eyed
Talks between Germany's conservatives and Social Democrats (SPD) focused on forming a coalition amid plans to increase military spending in Europe. A nearly trillion euro borrowing boom is seen as a way to fund infrastructure and defense spending. The proposal includes 400 billion euros for the German military and 500 billion euros for infrastructure.
- This potential surge in government spending could have far-reaching consequences for Germany's economy, including inflationary pressures and strain on public finances.
- How will the impact of increased military spending on global geopolitics be assessed by international partners, particularly given the current tensions between Russia and Ukraine?