Germany’s Merz strikes ‘game-changing’ deal to boost defence spending

• Germany’s Merz in ‘difficult’ talks over plans to boost defence spending

  Debate over multibillion-Euro top-up to military fund is playing a central role in exploratory coalition discussions
  
  Financial Times - 4d

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

  Economists’ proposal for up to €800bn of funding under review as part of coalition talks
  
  Financial Times - 7h
• 

  Starmer announces big cut to UK aid budget to boost defence spending

  PM confirms rise in military spending to 2.5% of GDP by 2027 – three years earlier than planned. Keir Starmer has announced drastic cuts to Britain’s international aid budget to help pay for a ...
  
  The Guardian - Feb. 25

• Starmer urged to use defence spending boost to revive UK manufacturing

  Make UK chief calls for support for small businesses as Europe faces pressure from US to shoulder security cost
  
  Financial Times - 12h
• 

  Germany’s future coalition partners to relax debt rules to boost defence budget

  Conservative alliance and Social Democrats to propose exempting spending of more than 1% of GDP on defence. The prospective partners in Germany’s next government have said they will seek to loosen ...
  
  The Guardian - 3h

• Why Germany’s debt rules are a bellwether for EU defence spending

  Also in this newsletter: can European lawmakers convince the US to change its tone on digital taxes?
  
  Financial Times - Feb. 25
• 

  Don’t mention the war: in Germany, politicians are hiding the truth about defence spending | Paul Taylor

  By centring the discourse on immigration, MPs have handed support to the far right – and hidden a ticking economic timebomb from voters. The candidates to lead Germany’s next government are ...
  
  The Guardian - Feb. 20
• 

  UK to raise defence spending to 2.5% of GDP by 2027

  Starmer’s announcement of ‘biggest sustained rise’ since cold war comes ahead of Trump meeting on Thursday
  
  Financial Times - Feb. 25
• 

  Starmer and Badenoch clash over defence spending

  The prime minister announced the UK will reallocate aid funds to boost military spending to 2.5% of GDP by 2027.
  
  BBC News - 6d

More from Financial Times

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  Financial Times - 1h
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  The economic costs of Trump’s assault on the global order

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  Trump’s heist in broad daylight

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  Financial Times - 10h
• 

  Vance criticised after comments on UK-French peacekeeping plan

  US vice-president said deal unlikely to be secured by ‘some random country that hasn’t fought a war in 30 or 40 years’
  
  Financial Times - 3h

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