Growth in Germany good for all of Europe, says Finance Minister Klingbeil

Published 12/05/2025, 13:58
© Reuters.

Investing.com -- Germany’s Finance Minister Lars Klingbeil announced on Monday that the country’s increased commitment to defense spending is being positively received by its European partners. This comes after the German parliament approved a significant increase in spending earlier this year, which includes a removal of defense investment from borrowing cap rules.

In a meeting of European Union finance ministers held in Brussels, Klingbeil stated that the growth in Germany, spurred by the new government’s reforms, is good news for Europe. He further emphasized that all European partners are supportive of Germany assuming a larger role in defense.

The decision to increase defense spending was approved by Germany’s parliament in March. This plan includes a massive surge in spending, notable for its removal of defense investment from rules that traditionally limit borrowing. This move signifies a major shift in Germany’s fiscal policy, allowing for more investment in defense without the constraints of borrowing caps.

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