The media reported an increase in the prices of European defense stocks against the background of Germany's plans to increase spending

The Conservatives and the center-left Social Democrats, who won the election, are considering financing defense and infrastructure funds with debt totaling just under €1 trillion. We are talking about a special fund for defense in the amount of 400 billion euros and for infrastructure in the amount of 500 billion euros.

"The rapid growth of stocks reflects investors' confidence that manufacturers of military equipment, ammunition and other military equipment will greatly benefit from this gold mine," the article says.Shares of defense contractors including Thyssenkrupp, Hensoldt, Rheinmetall, BAE Systems and Leonardo jumped by double-digit percentages on the back of this news. Experts note that this will be a "change in the fiscal regime of historical proportions" for Germany.

According to Reuters, the plans were another consequence of the cooling of relations The United States to support the defense of Europe since the return of the American president Donald Trump to the White House. It is noted that they are also related to Germany's reaction to the conflict between Russia and Ukraine.

Change of power: German elections won by the opposition CDU/CSU party

Friedrich Merz will be the new chancellor.

The day before, Reuters reported on the plans of the future German authorities to allocate special href="https://iz.ru/1847546/2025-03-02/smi-soobsili-o-planah-germanii-vydelit-specialnye-sredstva-na-oboronu-strany " target="_blank">funds for defense and infrastructure, as well as create two funds for this. It is expected that 400 billion euros will be invested in the defense industry, and 400-500 billion euros in infrastructure.

Early elections to the Bundestag were held on February 23. The victory was won by the opposition bloc of the Christian Democratic and Christian Social Unions (CDU/CSU), which gained 29%. For the first time in history, the Alternative for Germany (AfD) party took second place in the Bundestag elections, gaining 20% of the vote.