German deputies must validate on Tuesday the investment “bazooka” subject by the future chancellor Friedrich Merz. A plan that could benefit its European neighbors directly, including France.
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Emmanuel Macron is in Berlin Tuesday, March 18, the French president meets the future chancellor Friedrich Merz, while the giant investment plan of the probable future chancellor must be voted by the deputies of the Bundestag. After several days of negotiation, between the parties (the Greens, the Conservatives and the Social Democrats), the way is normally released.
This plan, described as “bazooka” by economists, is very good news for Europe and for France. Politically, he promises to relaunch the Franco-German couple. Economically, while the country has been in recession for three years, it must give Germany new resources to increase its defense capacities and revive its activity. It provides for the creation of a fund of 500 billion euros for infrastructure and security.
It is positive for us, because Germany is our first economic partner. It means that Germany will spend a lot of money on its energy equipment, transport, military equipment, cybersecurity. So many sectors in which France has recognized know-how. So our tricolor companies of construction, transport, like Alstom who makes trains, Vinci who makes roads, Eiffage, Bouygues Construction, etc., can hope to sign pretty contracts with our neighbors. Not to mention the defense, where we also have some florets.
Germany should logically turn to us rather than on the side of Americans or Asians, which therefore means opportunities, provided that our industries are able to produce more and meet demand. The downside is that, as there may be tensions of supply, this massive demand for Germanic equipment will increase prices and inflation promises to go back to Europe.
Germany also softens the “debt brake“. It is a real break for this country very straddling the deficits and which has so much difficulty spending. The law presented Monday morning in Berlin plans to exempt German budgetary rules, all expenses related to Ukraine and Defense. In the same way, this text will authorize the Länder, the German regions to be in debt. All this promises to create an air call on the financial markets: Positioning to lend to Germany and, there too, the reverse of the medal is that interest rates in Europe will increase.
