Murch: Germany’s defence spending must reach 2% of GDP

In favour of allocating resources of at least 2% of Germany’s GDP to defence spending over the next few years, the leader of the Christian Democratic Party (CDU) took part, while arguing that there is an “urgent need” for EU coordination after its inauguration in the US. “Europeans must now sit together quickly and discuss two major issues: What do we do for our own safety? This is too late. It has been necessary for years and, how will we strengthen our position in trade with America?” said Mr Murch in an interview with German Radio (Deutschlandfunk). Asked whether Donald Trump would have better relations with right-wing European leaders, the candidate chancellor responded affirmatively, but noted that “this does not mean that he will not have reasonable discussions with everyone else, since that is also in the US interest.” CORVERSE Germany, Friedrich Murch stressed, must also take on a leading role in Europe and promote, for example, the approval of the Mercosur trade agreement with Latin American states. Regarding defence expenditure, he advocated reinforcement of arms by EU Member States, but with close cooperation between them in order to achieve better prices and shorter delivery times. “Europe must act together towards the United States. With 450 million inhabitants, Europe is a market bigger than America and Canada together. Each country still depends on the US for military supplies, for example for fighter aircraft. If EU countries jointly ordered a larger number, they could also negotiate better prices,” said Mr Murch. The CDU leader also noted that the target for the next three-four years should be defence spending to reach at least 2% of GDP, away of certainly 5% requested by Donald Trump. “First of all, we must now focus on achieving at least 2% for the next three to four years. In order to achieve this, a budget gap of EUR 30 to 40 billion per year should be filled,” he also stated as a possible funding instrument he said “reorganising the entire income system” and ensuring fewer refugee arrivals in Germany. “The main issue is not the relaxation or even the abolition of the debt brake, it is to be content with the money available. Furthermore, the economy must recover and then there will also be more tax revenues. We have to return to growth rates of 1-2%. 2% is possible for Germany,” said Mr Murch. Source: RES – ICM