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Germany’s Friedrich Merz plans ‘double bazooka’ for defence and infrastructure

Economists’ proposal for up to €800bn of funding under review as part of coalition talks
A German paratrooper during Nato exercises. The proposal would signal Germany was serious about increasing defence capabilities at a time the US is seeking to unwind the transatlantic alliance

Germany’s chancellor-in-waiting Friedrich Merz is considering unlocking hundreds of billions in extra funding for the country’s military and infrastructure as coalition talks with Social Democrats gather pace.

One option under review is a proposal by top German economists to raise up to €800bn in new public borrowing for two separate off-budget funds over a decade, said two people with knowledge of the matter.

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