Can Increased Defense Spending Save the German Economy?  

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Months ago, Germany’s government plunged into crisis. Chancellor Olaf Scholz’s coalition collapsed amid internal disputes over fiscal policy and defense spending, crippling the government.  

The political turmoil in Germany is further exacerbated by the shifting geopolitical landscape following the U.S. election. President Trump’s confrontational stance toward European allies and strained relations with Ukraine have heightened concerns about the future of transatlantic alliances. This uncertainty has put additional pressure on future Chancellor Friedrich Merz, leader of the Christian Democrats (CDU), to expedite the formation of a new government, and simultaneously end Germany’s current economic stagnation via increased military spending. 

And it

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