Germany wants to drive EU member states into spending that could also threaten the economic stability of the entire EU.
Germany’s caretaker finance minister has written to the Commission asking the Commission to approve a deficit of more than 3% as set out in the Stability and Growth Pact for Germany in order to spend 1.5% of GDP on defence, citing the national escape clause / emergency clause.
Germany’s macro-economic stability makes this possible, but with the launch of ReArm Europe, EU-level spending in the defense sector may reach enormous proportions, as this may indirectly encourage other member states to invest in defense, even from loans. If countries such as Italy, Greece or Spain were to take out additional loans, it would seriously threaten their fiscal stability and thus the economic strength of the entire bloc.
Another risk factor is that the President of the Commission, Ursula Von der Leyen, as Minister of Defense in her home country, was involved in a serious corruption case precisely because of certain defense spending, so the fact that she coordinates such an EU-level project definitely raises questions.
Translated and edited by Hans Seckler
