Military strategist advocates for significantly revising defense budget allotments
After Russia's invasion of Ukraine, it's become evident that Germany's military is underprepared. Economist Moritz Schularick, from the Kiel Institute for the World Economy, argues that Germany needs to significantly boost its military spending. He stated, "If we exclude defense expenditures from the debt brake, we can gradually build up capabilities in the long run." Only then can long-term capabilities be established. "Industry requires assurance that production can occur in the military sector."
In Schularick's opinion, the 100-billion-euro special fund alone is insufficient. He discredits special funds, asserting, "The issue with special funds is that they often amount to merely a drop in the ocean compared to the required investment and are not a sustainable financing option." Germany should reduce its reliance on the U.S. arms industry, according to him. "These should be resources we have at home," he added. "Just like masks and vaccines during the coronavirus pandemic."
Even without the debt brake, parliament remains the regulator, Schularick emphasized. "If the elected German parliament decides we need to invest five percent of our GDP annually in modern weapons or defense technologies and expand military research on a large scale, then so be it."
Given the current geopolitical scenario, Schularick feels that politics is primarily focused on the next election rather than security. "German fiscal policy is a threat to Europe's security," he stated.
As an approximate figure, Schularick anticipates investing around 100 billion euros annually in security in the future. "Because larger-scale industrial capabilities are necessary for a robust European defense industry."
Schularick further emphasizes that Wars and Conflicts around the world underscore the importance of strengthening Germany's military. Given the current global climate, it's crucial for Germany to invest substantially in its defense sector to avoid being reliant on external sources during Wars and Conflicts.
