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Germany's increased defense spending offers no benefits to its people: analyst

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Germany's increased defense spending offers no benefits to its people: analyst

2025-03-22 20:10 Last Updated At:23:37

The contentious increase in defense spending within a mammoth spending package passed by the German parliament on Friday diverts funds from constructive projects and is more likely to benefit the U.S. than the German public, a German analyst warned.

The Bundesrat, the upper house of Germany's parliament, approved a multibillion-euro package backed by the CDU/CSU union and the Social Democratic Party on Friday.

The package will allow for the setup of a special fund of 500 billion euros (about 544 billion U.S. dollars) to finance infrastructure projects, climate and economic transformation efforts.

Additionally, the passage of the package lifts a "debt brake" measure, introduced in 2009, that has capped military spending at less than 1 percent of the national GDP.

However, such a massive increase in the country's military budget has sparked widespread controversy.

Bernd Einmeier, managing partner of ThinkTank Networks, argued that the increase in defense spending means that funds are not being directed toward constructive projects and will not promote European prosperity.

"What we are seeing now is the government channeling funds into destructive purposes and weapons. We all know that these weapon systems will certainly not promote European prosperity. We are not investing in constructive projects, but rather in things that will only bring destruction, death, and suffering," he said.

Einmeier further warned that the package would add to Germany's debt and financial burden.

While the CDU/CSU union and the Social Democratic Party claim it will boost the economy, he argues that the real beneficiaries may not be the German public, but rather the U.S.

"A large portion of the weapons procurement orders has flown to the U.S., which will undoubtedly stimulate the U.S. economic growth. But for us, it's of no help and will only deepen our dependence on the U.S. We are spending money that we don't even have, and this debt will ultimately be paid off by our next generation. I have a very critical attitude towards this. The interest burden will be extremely heavy, amounting to 50 billion euros annually," he said.

The spending package will come into effect once signed by German President Frank-Walter Steinmeier.

Germany's increased defense spending offers no benefits to its people: analyst

Germany's increased defense spending offers no benefits to its people: analyst

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Chinese EV giant to open European headquarters in Budapest

2025-05-17 19:33 Last Updated At:20:37

Leading Chinese electric vehicle (EV) manufacturer BYD said on Thursday that it will open its first European business headquarters as well as a new research and development center in Budapest, Hungary.

With an investment of almost 250 million euros, the BYD project will create 2,000 jobs, mostly for university-trained engineers. It also includes strategic partnerships with Hungarian universities and vocational institutions, aiming to link research and development efforts with local talent.

The factory is set to begin operations by October in Szeged, southern Hungary, where steel frames have already risen to form the skeleton of the plant. Once completed, it will produce EVs for the entire continent.

During a joint press conference on Thursday, both sides expressed optimism about their collaboration as BYD established its presence in the heart of the EU.

"The cars of the future will also be manufactured in the country," said Viktor Orban, Prime Minister of Hungary.

"BYD can consider itself lucky for participating in the economic and social development of Hungary. The world can be witness to the endless possibilities provided by the Chinese-Hungarian cooperation," said Wang Chuanfu, CEO of BYD.

Hungary's automobile industry took off in the 1990s when major Western automakers established factories, attracted by the country's skilled workforce and low production costs. Since then, the country has evolved into a key vehicle assembly hub.

However, BYD's arrival signifies a new era -- Hungary will not only manufacture the future of cars but also play a crucial role in shaping it, according to industry insiders.

"I think it's a necessary step [for BYD] to get more into the country and get more involved in the European market," said Tibor Antaloczy, an automotive analyst.

Chinese EV giant to open European headquarters in Budapest

Chinese EV giant to open European headquarters in Budapest

Chinese EV giant to open European headquarters in Budapest

Chinese EV giant to open European headquarters in Budapest

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