Four senior German economists with chief advisory functions for the German government have issued an open appeal to launch a €300 billion military upgrade program before the early elections scheduled for Feb. 23, 2025. The present constellation with the “non-populist” parties still having a two-thirds majority in the parliament, may not be there in the newly-elected parliament, the four signers of the appeal argue, adding that the expected “shock waves” coming from the new U.S. President Donald Trump would force the Europeans anyway to spend much more for their own military. The €300 billion could either be released by a partial lifting of the “debt brake” which would exempt military spending from the zero-budget-increase rule (this would require a two-thirds majority because that rule is a constitutional clause); or, another “special budget” like the €100 billion program in addition to the regular defense budget of €60 billion should be issued, the four economists write.
These steps should be taken before the February early election, also with the idea that the arms industry should have certainty on the scope of defense investments as soon as possible. The four signers of the appeal are: Clemens Fuest, President of the Munich-based IfO; Moritz Schularick, President of the Kiel Institute for World Economy; Armin Steinbach, Jean Monet Professor for European Law and Economy at the HEC in Paris; Guntram Wolff, Professor for Economics at the Free University of Brussels.
