Global Instability to Increase German Defense Expenses

Germany will spend more on defense in coming years in response to growing global instability, Finance Minister Wolfgang Schaeuble said in an interview published on Sunday.

He did not tell newspaper Bild am Sonntag how much extra Europe’s largest economy would spend, or when the increases would kick in.

“Of course we’ll have to shoulder higher spending on defense in the next few years given the various crises and instability in the world,” he was quoted as saying.

 
“In the short-term, i.e. for the coming year, you can’t do much with a bigger defense budget because industry simply can’t deliver big defense projects that quickly,” he added.

Asked which ministry could expect more money in future, Schaeuble said he had suggested that Germany moderately boost spending on development aid. He did not say to whom he had made the suggestion.

The country would need to increase the amount it spends on defense and domestic security because “unfortunately the world has become less safe,” he added.

via Reuters

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza