Steve Bannon Accidentally Revealed 'Secret' Trump Plan?

With one executive order, Trump could dismantle the rigged financial system--and return America to the gold standard. He's been stockpiling gold since 1974... should you? Discover the "Trump Loophole" to move funds from your IRA & 401(k) into gold--tax free!

German Parliament Backs Changes to Constitutional 'Debt Brake'

European Capital Insights
March 18, 2025

Germany's parliament backed on Tuesday a plan to increase government borrowing limits as the largest economy in Europe looks to bolster its defense and infrastructure spending.

The Bundestag approved several amendments to the country’s constitution, allowing future federal and state governments to take on more debt. This will enable higher defense spend and €500 billion for infrastructure to bolster the European Union's (EU) military capabilities.

German Chancellor-in-waiting Friedrich Merz proposed defense spending as the EU grows increasingly concerned about the US commitment to Europe's security. President Donald Trump has criticized European nations for not meeting their NATO commitment of 2% of GDP per year by 2024, threatening to reassess the US commitment to the military alliance.

“We have for at least a decade felt a false sense of security,” Merz told the Bundestag lower house of parliament on Tuesday. "The post-war peace dividend had been used up long ago and a total rebuilding of Germany’s defense capabilities was needed," he added.

Source: X

In an interview with public broadcaster ARD on Sunday, Merz said the "situation has worsened in recent weeks." He cited Trump's overtures to Russia to end the Ukraine war and his wavering commitment to NATO.

"That is why we have to act fast," Merz said. He has urged an amendment to the constitution to exempt defense spending beyond 1% of GDP.

German Decisions Push European Markets Higher

The pan-European Stoxx 600 closed 0.61% higher on Tuesday, with most sectors and all major bourses in positive territory. Frankfurt's DAX German corporates Rheinmetall, Bayer, ThyssenKrupp, and Continental traded higher on the news.

DAX is up 16.76% year-to-date, outperforming its American counterpart, the S&P 500, by over 20%.

Some 513 parliamentary members voted in favor of the constitutional changes, while 207 voted against them. Over two-thirds of parliament members needed to vote to change Germany’s basic law to soften the debt brake.

The decision to increase public investment and relax constitutionally enshrined borrowing rules to allow higher defense spending "sends a very clear message to Europe that Germany is determined to invest massively in defense,” EU Commission President Ursula von der Leyen said.

The center-right bloc of the Christian Democratic Union (CDU) and Christian Social Union (CSU), along with the center-left Social Democrats (SPD) and the Greens, supported the package.

The Bundesrat, a body representing the country's states, will meet on Friday to vote on the law. Only then will it become enshrined in Germany's constitution.

German Economy Constrained by ‘Debt Brake'

German government spending has historically been constrained by its "debt brake." The limits have restricted new annual borrowing to 0.35% of total GDP. If Germany amends its constitution, it will allow the government to borrow over €1 trillion over the next decade.

"The next federal government will have little choice but to make massive public investments in defense capabilities," Deutsche Bank Research Institute wrote on March 13. "This effort cannot be financed within the confines of the debt brake without impacting other core government tasks and thus risking public support."

Merz's CDU and its sister party won the election with 28.6% of the national vote on February 23. He has pledged to form a coalition government in April.

The economic starting point for the next federal government is extremely challenging, Deutsche Bank Research Institute said. "If the status quo were to persist, German economic growth would likely remain well below 1% per year until the end of the decade."

Source: Deutsche Bank Research

On Sunday, Germany’s parliamentary budget committee approved plans to increase state borrowing to bolster defense and revive growth massively.

The committee convened for an extraordinary session and backed the plans — agreed on Friday between the conservative CDU/CSU, the Social Democrats, and the Greens — sending them to parliament for adoption.

German Economic Sentiment Surges on Fiscal Policy

Ahead of parliament's vote, German economic sentiment expectation surged to its highest level since January 2023.

The ZEW Indicator of Economic Sentiment for March rose to 51.6 points or 25.6 points above the previous month's reading. The last time the indicator increased this substantially was in January 2023.

Source: ZEW

"The brighter mood is likely due to positive signals regarding the future German fiscal policy," including the multi-billion-euro financial package for the federal budget, ZEW President Achim Wambach said on Tuesday. "Prospects for metal and steel manufacturers as well as the mechanical engineering sector have improved"

On March 12, the S&P Global Business Outlook survey showed a slight improvement in the mood among Germany’s businesses during the first quarter of the year. "Optimism has returned to the country’s manufacturers," S&P Global said.

"Still, growth forecasts were subdued, amid a backdrop of geopolitical tensions," S&P Global said. Firms predicted sustained strong cost pressures and, as such, cited plans to reduce workforces amid concerns over competitiveness, it said.

Source: S&P Global

Germany Faces Strong Headwinds Despite Fiscal Change

Germany still faces considerable headwinds. These include, among other things, an aging population, high energy costs, weak productivity, and China’s emergence as an industrial rival.

Gross domestic product contracted 0.2% in 2024, according to data from the Federal Statistical Office (Destatis). Investments fell by 2.7% in the 4th quarter, compared with the same quarter a year earlier, Destatis said.

Analysts have questioned Germany's commitment to fiscal reform and defense spending. They point to the €100 billion of the €500 billion allocated to climate change rather than increasing power supplies.

"Instead of reopening its nuclear power plants, Germany will vote today to spend another €100 billion for green fairytale projects," Michael A. Arouet, an economy, politics and investing analyst, wrote on X. "One could not make it up."

After the parliament's decision, Arouet wrote: "RIP German industry."

Disclaimer:

Any opinions expressed in this article are not to be considered investment advice and are solely those of the authors. European Capital Insights is not responsible for any financial decisions made based on the contents of this article. Readers may use this article for information and educational purposes only. 

This article is from an unpaid external contributor. It does not represent Benzinga’s reporting and has not been edited for content or accuracy.

Continue Reading...

Popular

Haven't filed your 2021 tax return? You might be missing out on a COVID stimulus check

If you haven't filed your 2021 tax returns you might be missing on a COVID stimulus payment. Taxpayers who haven't filed 2021 tax returns who may be eligible for the Recovery Rebate Credit must file it by April 15, 2025 to claim the credit.

BranchOut's Partnership With MicroDried Expected To Boost Annual Sales By At Least $5 Million: Details

BranchOut Food's new partnership with MicroDried is expected to generate $5-$6 million in annual ingredient sales, leveraging its GentleDry technology.

Three New Patents Reveal Elon and Trump's Secret "Project America" - Ad

Three patents could help President Trump and Elon Musk completely revolutionize a $23 Trillion market. This revolution is about so much more than just self-driving cars. Instead, what Elon's pivoting Tesla towards... Is a market that's 1,000X BIGGER. But a project THIS big can't stay under the radar for long...

What's In Store For Darden This Earnings Season? Analyst Predicts Slight Miss In Same-store Sales

Oppenheimer analyst predicts a slight miss in Darden's same-store sales for Q3, with EPS forecast slightly below consensus at $2.78.

Trump threatens Houthi rebels that they'll be 'completely annihilated' as airstrikes pound Yemen

DUBAI, United Arab Emirates (AP) — threatened on Wednesday that they'll be “completely annihilated” as American airstrikes pounded locations under their control, while further pressuring the group's main benefactor Iran.

The DOGE Shock: Nine Stocks to Buy - Ad

They say that DOGE's real agenda could shock the entire stock market in the coming days - sending a handful of widely unknown stocks soaring. And they've compiled the definitive investment playbook for anyone who wants the opportunity to capitalize.

Can AI help you win your March Madness bracket? One disruptor bets $1 million on 'yes' (and Houston)

DENVER (AP) — Perhaps the surest sign that artificial intelligence really is taking over the world will come the day it wins your favorite bracket pool.

Ben & Jerry's alleges parent company Unilever removed its CEO over social activism

Ben & Jerry’s says its CEO was unlawfully removed by its parent company, Unilever, in retaliation for the ice cream maker’s .

Bill Gates' Next Big AI Bet: Stargate Could Be a Game-Changer - Ad

Jeff Brown, the tech expert who predicted Bitcoin, Nvidia, and Tesla, reveals Bill Gates' new AI project, Stargate. Could this be the next big AI breakthrough?

Cathie Wood Goes On Shopping Spree Amid Tech Bloodbath Monday: Loads Up On Tesla, Palantir, Coinbase And These Stocks

On Monday, Cathie Wood‘s Ark Invest made significant trades involving Tesla Inc. (NASDAQ:TSLA) , Palantir Technologies Inc. (NASDAQ:PLTR), Coinbase Global Inc. (N

Brazilian authorities suspend the airline involved in last year's crash that killed 62

SAO PAULO (AP) — aviation agency on Tuesday suspended the operating license for local airline Voepass, citing security risks as an investigation continues into a that killed all 62 people on board.

Globetrotting CFA Discovers Top Four Gold Miners With 100X Upside Potential - Ad

Most CFAs sit at a desk... But one unusual CFA went all-in on gold investing 20 years ago... and accidentally positioned himself as the expert's expert for the current bull market. Garrett Goggin's research has led him to the the Top Four miners sitting on potential upside of 100X or more for the current gold mania. He's been offered as much as $100k by Hedge Funds.

China learned from Trump's first trade war and changed its tactics when tariffs came again

WASHINGTON (AP) — The leaders of both Canada and Mexico got on the phone with President Donald Trump this past week to on their countries, but China’s president appears unlikely to make a similar call soon.

13-Second Trump Video Could Trigger AI Shock - Ad

Louis Navellier, the legendary investor who picked Nvidia before shares exploded as high as 3,423%... Just released a video with this 13-second Trump clip about the current AI boom. Please, do NOT buy any AI stock before watching that clip. What President Trump said in that clip could have implications for this AI boom.

Japan's Seven & i sells retail business to Bain Capital for $5.4 billion, plans IPO

Japan’s Seven & i, the parent company of the Japanese 7-Eleven convenience store chain, said Thursday it is selling its supermarket store assets to Bain Capital for about $5.4 billion.

Law firm sues over Trump executive order that seeks to suspend security clearances

WASHINGTON (AP) — A during the 2016 presidential campaign sued the federal government Tuesday over an executive order that seeks to strip its attorneys of security clearances.

The $20 Trillion Secret of Room 3330 - Ad

Developed by the U.S. military 79 years ago, this controversial technology is about to change American life forever: Elon Musk has already funneled $6 billion to resurrect this covert project -- and the companies involved are minting 10,000 millionaires every week [Goldman Sachs].

Sam Bankman-Fried Says Prison Inmate Diddy Has Been 'Kind' To Him: 'It's A Position No One Wants To Be In'

Jailed cryptocurrency fraudster Sam Bankman-Fried shared his prison experience and interaction with fellow inmate rapper Sean Combs, popularly known as "Diddy," according to an interview released Thursday.

What should you be doing to "AI-Proof" your retirement? - Ad

AI is creeping into every aspect of our daily lives... According to billion-dollar fund manager Louis Navellier, it's never been more important to AI-proof your wealth. He lays out three simple steps to take ASAP in his new video.

Universities are facing big cuts to research funding. At Duke, it's a time for 'damage control'

DURHAM, N.C. (AP) — Facing the potential loss of hundreds of millions of dollars in federal funding, Duke University is preparing for the worst.

Edmunds: 2025 Honda CR-V vs. 2025 Subaru Forester

The is a redesigned model, but Subaru didn’t exactly stray from the formula of the last generation. It’s still a boxy small SUV with great visibility, adventure-ready versatility, and a no-nonsense approach to interior design. Its many upgrades for 2025 help keep it competitive, but how does it fare against the class best?

Tech Legend Issues AI Warning for May 21st - Ad

And many people are now wondering...Is this the end of the AI boom? A critical AI event scheduled for May 21st, and could have the answers. It's guaranteed to happen...And I believe it's going to be a game-changer for the market.

Trump vs Musk? Federal Workers Unconvinced He'll Take Action: 'If They Don't Cut, Elon will, Comments Show Who's Really In Charge'

President Donald Trump has reportedly limited the authority of his billionaire advisor, Elon Musk, to dismiss federal employees. This development has stirred skepticism among the workforce and political circles.

Tesla Out, Ford In: City Of Baltimore Goes 'In A Different Direction' Reversing EV Deal From 2024

Tesla is losing an EV city fleet deal in Baltimore to Ford. A look at what happened and how politics may have factored into the decision.

New Study: 50 Stocks Will Crash While 7 MAGA Stocks Will Soar - Ad

If you own any of these stocks -- directly or through mutual funds -- I want to encourage you to sell them before April 30th. I've compiled all 50 companies in my "MAGA Blacklist" report. Your retirement could depend on seeing this list.

What's Going On With Gap Stock Friday?

Gap stock is trading higher on Friday after the company reported fourth-quarter earnings on Thursday after the market closed.

Trump's Secret Plan to Reboot the Dollar Leaked? - Ad

Steve Bannon let slip 3 shocking words--and Wall Street panicked. According to Bannon, President Trump is poised to restore the gold standard, reset the dollar, and send gold soaring. Position yourself before it's too late! Claim your free 2025 Gold Guide and discover the Trump Loophole to move funds from your IRA & 401(k) into gold--tax-free!

Explainer: What's a recession and why is rising anxiety about it roiling markets?

WASHINGTON (AP) — Stock markets , consumers and businesses have started to , and economists are marking down their estimates for growth this year, with some even seeing rising odds of a recession.

Forget Nvidia - This Odd Tariff Play Is Now Going Viral - Ad

As President Trump slaps China with new tariffs, the Fed is boxed in--and gold is skyrocketing just like it did during Trump's first term. JPMorgan just grabbed $4 Billion in gold bars... should you? Discover a "Tariff Assistance Loophole" to move funds from your IRA & 401(k) into gold--tax-free!

Mortgage lender Rocket Cos. to acquire real estate brokerage Redfin in deal valued at $1.75 billion

Mortgage lender Rocket Cos. has agreed to acquire online real estate brokerage Redfin in an all-stock deal valued at $1.75 billion.

Canada's Liberals will elect new leader to replace Trudeau as country deals with Trump's trade war

TORONTO (AP) — Canada's governing Liberals will announce a replacement for Prime Minister on Sunday as the country deals with U.S. President Donald Trump's and as a federal election looms.

Stocks to Crash on March 16, 2026? Here's Compelling Reason Why - Ad

Perhaps no one on or off Wall Street has been more accurate calling the bull and bear turns of the past 7 years. From the bear markets of 2018 and 2022... to the roaring bull runs of 2021, 2023, and 2024. And now, Marc Chaikin is predicting the next crash will start March 14, 2026. If you have money in the markets, Chaikin's thesis is a must-see.

US envoy visits Moscow for ceasefire talks that a Russian official says would help Ukraine

An envoy of U.S. President Donald Trump arrived in Moscow on Thursday for talks on an American-proposed that Ukraine has accepted but which a senior Russian official said would help Kyiv by giving its a break, three years after .

Washington Post columnist quits after her opinion piece criticizing owner Jeff Bezos is rejected

A columnist who has worked at The Washington Post for four decades resigned on Monday after the newspaper's management decided not to run her commentary critical of owner Jeff Bezos' .

The Fort Knox Cover-up? What It Means for Gold - Ad

Trump and Musk are demanding answers: Is Fort Knox empty? If the gold is gone, supply collapses, and prices could skyrocket instantly. Right now, I've uncovered 5 major gold predictions that could make this Fort Knox moment even bigger than people realize. One of them is already unfolding--and the window to act is closing fast.

Greenland in facts and figures

NUUK, Greenland (AP) — is having a moment in the spotlight as U.S. President Donald Trump maneuvers to gain control of the mineral-rich Arctic country. Here are some facts and figures about it:

Trending Now

Information, charts or examples are for illustration and educational purposes only and not for individualized investment management This message contains commercial elements, such as advertising. We only send these offers to those who have opted in to our newsletter. Past performance is not indicative of future results. For these reasons we strongly suggest trading in a DEMO/Simulated account. The information provided by us is for educational and informational purposes only. We make no representations or warranties concerning the products, practices or procedures of any company or entity mentioned or recommended and have not determined if the statements and opinions of the advertiser are accurate, correct or truthful. If you use, act upon or make decisions in reliance on information contained or any external source linked within it, you do so at your own peril and agree to hold us, our officers, directors, shareholders, affiliates and agents without fault.

Copyright technicaltrading.org
Privacy Policy | Terms of Service