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Germany Unveils €850 Billion Recovery Plan, Boosts Defense Spending

3/17/2026

23 4 Full Breakdown

Summary

Story summary

Germany's Merz government unveiled an €850 billion recovery plan that allocates €200 billion for defense and €500 billion for infrastructure.
The plan raises the 2026 defense budget by 25% to €82.69 billion, aiming for 3.5% of GDP by 2029.
France, Italy, and the United Kingdom emphasize defensive roles and hesitate to join a U.S.-led naval coalition.
India secured safe passage for its gas tankers through the Strait of Hormuz.

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Story summary

Germany's Merz government unveiled an €850 billion recovery plan that allocates €200 billion for defense and €500 billion for infrastructure.
The plan raises the 2026 defense budget by 25% to €82.69 billion, aiming for 3.5% of GDP by 2029.
France, Italy, and the United Kingdom emphasize defensive roles and hesitate to join a U.S.-led naval coalition.
India secured safe passage for its gas tankers through the Strait of Hormuz.