Shifting Defense Spend and Economic Resilience

Germany’s chancellor-in-waiting, Friedrich Merz, has promised “independence” from the US, having become convinced that the Trump administration is “largely indifferent to the fate of Europe”. As a result, he hopes for significant spending on defense and infrastructure. Against that backdrop, and after years of lackluster growth, Germany’s DAX index has been among the best performing markets. Can the spending plans add to the nation’s renewed momentum? Featured in this episode is Paul Donovan, Chief Economist for UBS GWM, alongside host Christopher Swann.