The German government will invest one trillion euros in its economy over the next 12 years, with half allocated to the defense industry and the other half to infrastructure. Analysts confirm that the impact of such a large financial injection will also be felt in the Estonian economy.
Germany’s economy has been stagnating for several years, so the new government’s decision to invest €1 trillion over the next 12 years is expected to solve multiple problems.
“The security situation has changed, to put it mildly, and investments in the military must begin. The other major concern is that trains are not running on schedule or not running at all, roads are deteriorating and schools are in significantly worse condition compared to those in Estonia,” said SEB economic analyst Mihkel Nestor.
In addition to improvements in roads and schools, the economy is also expected to generate higher added value.
“Energy-intensive industries such as chemicals, paper and metal manufacturing were already in decline before energy prices rose. Now, added value is seen more in Germany’s key export sectors, which have long been important — machinery, electronics and potentially even newer digital services,” said Peeter Luikmel, an economist at Eesti Pank (Bank of Estonia).
More read: ERR.EE