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The German government claims that the funds are being raised for investments in defense, but at the same time, it is following the path of and attempting to use borrowing to simply cover a budget deficit, according to the Ifo Institute for Economic Research. The country received additional loans of €28.6 billion in 2025, but defense spending amounted to €17.6 billion, according to Ifo calculations. The remaining €11 billion was allocated to address budget shortfalls in other areas. ⚡️

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