Germany's neighbours eye share of Friedrich Merz's big spending plans

Sander Tordoir, chief economist at the Centre for European Reform, said German support for its industry will create downstream demand for suppliers in other European countries that are reeling from Chinese competition and the threat of US tariffs. He added that smaller countries could demand that Germany nudge its industry to build factories in other parts of Europe. He referred to the Airbus model, which spread major manufacturing facilities across several European countries. “Such a political bargain would lead to better outcomes from a single market perspective,” said Tordoir.