Military editions: Verdi boss focuses on peace dispute!

Military editions: Verdi boss focuses on peace dispute!

Salzgitter, Deutschland - On July 14, 2025, numerous interested parties gathered for the third union conference for peace in Salzgitter. Dierk Hirschel, chief economist from Verdi, targeted the rapidly rising military spending in his speech. He made it clear that these expenses should rather be regarded as "dead capital" and would not contribute to the productive economy, as is often claimed. This assessment coincides with the current trends of global armor expenditure, which, according to Statista, will continue to increase by 2024

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Hirschel also pointed out that investments in infrastructure expansion, such as for daycare and streets, could provide long -term financial yield. This is in contrast to the enormous resources that flow into the armaments sector - an industry that not only absorbs capital but also qualified specialists. With the current federal budget of 470 billion euros, the welfare state is facing increasing financing needs. Hirschel warned of distribution battles that are already pointed, including in the nursing care fund.

military expenditure as an economic topic

A frequently mentioned reason for the high arms expenditure is supposed protection against military threats. The Peace and Security Policy of the Rosa-Luxemburg Foundation, Ingar Solty, contradicted this logic. He explained that Russia had no obvious interest in attacking NATO countries. Rather, the country's war goals focused on control over the Crimea and the implementation of a regime change in Ukraine.

The geopolitical climate and the associated military budgets are closely related to the security policy of Europe. The urgency of this topic has increased since the Russian attack on Ukraine in 2022. According to a report by the IFW Kiel, it was found that many European countries have raised their defense spending, and the EU expenditure should achieve the NATO target of 2 percent of GDP. NATO Secretary General Mark Rutte recalled that even over 3 percent were spent on defense during the Cold War

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economic consequences and perspectives

Research shows that higher military spending can also have economic effects. The Kiel Report, which deals with the consequences of defense spending, emphasizes that an increase in military budgets can cause productive effects. For an increase from 2 percent to 3.5 percent of GDP, the additional private economic growth could generate, even if this is not always so easy to realize in practice.

Professor Ethan Ilzetzki from the London School of Economics emphasizes that it is important to redesign European defense strategies in everyday business. He demands clear decisions in the context of regional security, which enable governments to control military expenses sustainably.

in a climate where billions flow into military armor while social services come under pressure, the dialogue is more urgent than ever. The coming years could be decisive to steer the course towards a more peaceful and fairer society.