The German government has signalled perhaps the most significant step change in decades in its thinking about the country’s role in European security and regarding its long-standing commitment to fiscal prudence. Late on 4 March, the parties set to form the next governing coalition announced an agreement that will see a major increase in federal and state government funding on defence and infrastructure.
In this article, we outline the nature of the proposals put forward and provide a round-up of analyst views on the impact of the announcement.