The contentious increase in defense spending within a mammoth spending package passed by the German parliament on Friday diverts funds from constructive projects and is more likely to benefit the U.S. than the German public, a German analyst warned.
The Bundesrat, the upper house of Germany's parliament, approved a multibillion-euro package backed by the CDU/CSU union and the Social Democratic Party on Friday.
The package will allow for the setup of a special fund of 500 billion euros (about 544 billion U.S. dollars) to finance infrastructure projects, climate and economic transformation efforts.
Additionally, the passage of the package lifts a "debt brake" measure, introduced in 2009, that has capped military spending at less than 1 percent of the national GDP.
However, such a massive increase in the country's military budget has sparked widespread controversy.
Bernd Einmeier, managing partner of ThinkTank Networks, argued that the increase in defense spending means that funds are not being directed toward constructive projects and will not promote European prosperity.
"What we are seeing now is the government channeling funds into destructive purposes and weapons. We all know that these weapon systems will certainly not promote European prosperity. We are not investing in constructive projects, but rather in things that will only bring destruction, death, and suffering," he said.
Einmeier further warned that the package would add to Germany's debt and financial burden.
While the CDU/CSU union and the Social Democratic Party claim it will boost the economy, he argues that the real beneficiaries may not be the German public, but rather the U.S.
"A large portion of the weapons procurement orders has flown to the U.S., which will undoubtedly stimulate the U.S. economic growth. But for us, it's of no help and will only deepen our dependence on the U.S. We are spending money that we don't even have, and this debt will ultimately be paid off by our next generation. I have a very critical attitude towards this. The interest burden will be extremely heavy, amounting to 50 billion euros annually," he said.
The spending package will come into effect once signed by German President Frank-Walter Steinmeier.
Germany's increased defense spending offers no benefits to its people: analyst
The deepening integration of sci-tech innovation and industrial innovation emerged as a key focus for potential cooperation among global business leaders at the China Development Forum 2025 held in Beijing on Sunday and Monday.
Speaking at the forum, Li Lecheng, Party secretary of the Chinese Ministry of Industry and Information Technology, highlighted China's steadfast implementation of the innovation-driven development strategy.
Currently, the number of foreign-invested enterprises established in China has surpassed 1.2 million, with foreign investments spanning 31 major categories and 548 subcategories within the country's manufacturing sector.
"Promoting the deep integration of scientific and technological innovation and industrial innovation is not a solo performance by China, but a chorus by the world. China has a complete industrial system, rich application scenarios, a super-large-scale market and a large number of talents, which provides a broad cooperation space for international industrial scientific and technological innovation," Li said.
Notably, beyond production, establishing research and development centers in China to collaborate with domestic enterprises on tackling key technical challenges has increasingly become a growing trend among foreign investors.
British pharmaceutical giant AstraZeneca signed a landmark agreement on Friday to invest 2.5 billion U.S. dollars in Beijing over the next five years. Under the agreement, AstraZeneca will establish a global strategic research and development center in Beijing, its sixth worldwide and second in China after one in Shanghai. The new center, equipped with an advanced artificial intelligence and data science laboratory, will accelerate early-stage drug research and clinical development.
"The reason we want to invest in China is because of the explosion of innovation that is happening in the country. As we work with those companies, we invest, of course, but we also invest in bringing our own capabilities, our own skills. We are investing in the life science physical ecosystem in Beijing, for instance, where we are actually going to help smaller startup companies come up with new products, training people who will actually be able to create economic growth," said AstraZeneca CEO Pascal Soriot.
The economic transformation led by innovation has also brought new opportunities for foreign-funded enterprises.
"We invest in high quality growth, we invest in innovating, and we invest in cooperating with our good Chinese partners. It's a journey that has just started right now, but it also is an area where we need to work close together," said Kim Fausing, president and CEO of Danfoss, a global market leader in heating and cooling.
China integrating innovation with industrial progress resonates with global business leaders
