Germany’s neighbours eye share of Merz’s big spending plans

Germany’s economic allies are becoming more open to relaxing EU state subsidy rules, anticipating benefits from Berlin’s €1tn spending plans on defense and infrastructure. Traditionally cautious, Denmark, Belgium, the Netherlands, and the Czech Republic now see potential for cross-border gains as the EU extends leniency on state aid until 2030, facilitating public funding for clean tech and strategic projects. While smaller states expect to benefit from German subsidies more than from France’s, concerns remain about fair competition and the complexity of the state aid system.