German parties’ defence sea change sends arms companies’ stocks soaring By Reuters

Germany's Military Spending Plans: Germany is considering a significant increase in military spending, potentially creating a special fund of 400 billion euros for defense and 500 billion euros for infrastructure, which could amount to 20% of the country's GDP. This has led to a surge in defense stocks as investors anticipate benefits for military contractors.

Political Context and Challenges: The discussions arise amid changing U.S. attitudes towards European defense and highlight Germany's historical underinvestment in defense. The proposed funding faces legal challenges due to constitutional debt limits, and support from various political parties will be necessary for implementation.