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The word “Bazooka” is an excessive metaphor for fiscal policy decisions. But it is completely appropriate to describe the transformation of Damascus Germany into a deficit in spending – a A political agreement to abandon the limits of deficit In general, defensive spending, and a huge special fund worth 500 billion euros for infrastructure outside the usual budget interconnected on the country’s constitutional “brakes” in the country.

If the reform is approved-it is still to be placed to vote by German legislators before the parliamentary mathematical changes-it will greatly remove the obstacles imposed by Germany on the political motivation that its economy needs severely. Only infrastructure funds, if they are quickly, can finish the two -year -old recession. The sober economists are considering doubling the potential growth rate.

A mixture of shortcomings in the past in investing in infrastructure and enhancing defensive spending should be addressed to change in the industrial policy of Germany. Both can help shift away from low industries. Modern manufacturing infrastructure must complete an economy that does not exceed carbon. The defense sector is already absorbing people and skills are no longer needed in the supply of internal combustion engine.

The markets are a clap. your The policy of the Keel Institute Policy It is noted that the increase in German borrowing costs after the advertisement is accompanied by high stock prices, euros, and the most severe return curve and stable virtual insurance – all of this indicates improving growth expectations.

So the Berlin turn will be good for the country. But it will have repercussions outside Germany – and beyond security.

It is difficult to exaggerate the revolution in the budget policy in the European Union, which requires it to transform Berlin from being the inability of the bloc into the most defenders of the deficit. When the “Financial Governance Review” was restarted after the epidemic, it was the Minister of Finance in Germany at the time that fought more difficult to tighten the rules of the reform budget of the European Union beyond the European Commission’s proposal. Berlin is now complaining that Brussels It does not relax the rules enough.

Her conflicting friends in northern Europe can be forgiven for irritation. But they are subject to a similar transformation, as the Prime Minister of Denmark called on its partners to “spend, spend and spend” on defense. When geopolitics imposes on you the choice between being a financial hawk and a defense hawk, it is the financial rectum that gives. As a result, the European Union budget policy suddenly became more open.

If this is the possible German face, what is it? There is likely to be a change in Berlin’s opposition to the use of foreign currency reserves in Russia, more than 200 billion euros under the state of the euro area. Its transfer to Ukraine as a batch offered to Moscow’s commitment to compensation for its destruction is the most important thing that Europe can play in Europe. It will significantly turn the balance of resources in favor of Kyiv yet We withheld support. And it will prove that, on its continental security, Europe is an independent player who calculates his account.

Perhaps, also, the largest German openness to “Eurobonds”, or joint European borrowing. Rubicon was already offered when Chancellor Angela Merkel agreed at that time on a fund to recover the pandemic of the European Union worth 800 billion euros in 2020. Berlin and other financial falcons insisted that this was one time. However, no one objected to the European Commission’s proposal last week for a joint borrowing facility of 150 billion euros; In fact, she received political support at the highest level within 60 hours of its introduction – definitely record. It is just a matter of time before Bazooka is not only seen as acceptable, but is required.

Even local spending in Germany can have large -scale continental effects. This clouds will not be on the request of the total euro area. Structural change may help to redirect the European Union’s export surplus towards investments at home.

Due to the huge weight of Germany’s share of European spending, it has a great opportunity to form the upcoming defensive investment explosion and enhance the efficiency of purchases and military effectiveness. For example, other countries can be invited to join their orders for expensive hardware, and unleash the economies of all. It can help press for political thorny, but financially and dissident simplification of standards, specifications and technical interface. Literally and metaphorically, Berlin can make Europe more bust for Back – or for the euro.

Martin.sandbu@ft.com