(08-23-2025, 04:26 AM)GK3 Wrote: (08-22-2025, 11:27 AM)Goose Wrote: https://www.yahoo.com/news/articles/trum...37446.html
It looks like yet again Putin got both the US administration and the Europeans to jump at a picture of a T-bone steak that wasn't really on offer. One can imagine the Europeans were going along just to try and influence what the US subsequently would do. It appears that the US is firmly sitting in the "do nothing" camp as far as actually creating conditions for a peace goes.
https://ca.news.yahoo.com/talk-boots-gro...55381.html
This one is for those of you that are sanguine on the probability of German contributions in Ukraine (and NATO for that matter) anytime soon.The Ossis are dead set against it. The current government doesn't have the political capital to do it, at least right now. Anything that is 48-45 in public opinion isn't going to happen with a coalition government that required two ballots to elect their Chancellor.
Are you saying that Germany will not even spend the 2%?
IMO Germany will "spend" more than the 2%. This article covers some of the issues involved.
https://www.cnbc.com/2025/06/24/can-germ...arget.html. The problem for Germany is sort of a "perfect storm". Their economy is negatively impacted by the loss of "cheap" Russian energy. The demand for their products is way down internationally. The German labor unions have been accepting minimal raises for 15-20 years in order to keep the economy running smoothly. That period ended a few years ago. They want to "catch up". On top of all that, the integration of the DDR is still problematic. Those states are all still depressed economically, with few bright spots to indicate a way to a better future. Germans also have understandably taken their superior economic status in the EU as a "given". They expect the welfare state safety net to be broad, deep, and bouncy. That takes money.
The article mentions the difficulty in borrowing money for Germany. The article doesn't highlight the role Germany has played in the EU as a "lender of last resort". If that lender is now in the capital market (and is expected to be indefinitely) that is going to be very problematic for the EU. Other European states are in that capital market too. None of them can devalue the Euro by themselves. Everybody is bound together by the overall value of the Euro and the demand/price of Euro dominated bonds. This has been a major problem for the PIGS almost since the inception of the Euro. With Germany no longer a "shining star", the Euro is a much less predictable currency. Germany won't like paying the required higher interest rates, as the article discusses. The rest of the EU, particularly the low end, simply cannot pay them. The "knock on" effect may limit what Germany can spend even if the domestic support is there.
Historically the problem with German military spending is that new programs get announced with great fanfare and then slowly sink to nothingness. What they actually DO becomes much much less than what they said they would do. This drives both the Bundeswehr and the defense contractors nuts. The defense contractors are also not known for their low prices. Put that all together and a German 3.5% of GDP budget in a given year risks becoming a 2.5% budget in terms of outyear effects.
Since about 1995 defense has been the area where "necessary" cuts were annually and continually absorbed. The reunification expenses were indeed massive. The general consensus in the rest of NATO was that Russia was very afraid of a resurgent Germany. Therefore, the "don't scare the bear" ethos became popular in both Germany and the rest of NATO. The German people liked it because it kept their taxes lower. The eventual end of Universal Military Training (UMT) in 2011 was not just a "strategic decision". It was a total sea change in the relationship between the German military and German society. The message was, particularly to younger people, Defense Doesn't Matter. The Bundeswehr became the logical equivalent of the TUV. A necessary government function but in no way socially or politically "special". This latter situation will make increased defense spending as a "permanent" fixture very difficult to sustain in Germany. Thus my concern that when the Ukraine war ends, Germany will revert whatever extra it may be doing as no longer necessary. This may happen well before the Ukraine war ends (i.e. immediately) if the economic/political consequences of the increased spending become bad enough, a not unlikely outcome. The "responsible" political parties are becoming quite concerned about AfD, as IMO they should be. However, their response may (unfortunately probably) not be a robust national debate on defense obligations but rather a race to the bottom. For Germany, the EU, and the world, ouch :-).