Germany's defence overhaul sends stocks skyrocketing

Germany's sudden embrace of large-scale military spending has electrified investors, sending European defence stocks soaring as the country's likely next government weighs a historic fiscal overhaul (via Reuters).

The prospect of a trillion-euro fund for defence and infrastructure, reportedly under discussion by the conservatives and Social Democrats, has pushed shares of companies like Thyssenkrupp, Rheinmetall, and BAE Systems to double-digit gains.

While neither party has confirmed the details, high-ranking officials stress the urgency of investment, especially as the United States signals a retreat from its role as Europe's security guarantor.

With legal hurdles looming and a sceptical parliament to convince, the path to unlocking this financial windfall is anything but certain. For now, it remains to be seen whether Germany can navigate the political and legal complexities of its ambitious defence plans.