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Confidence in German economy surges as parliament approves huge spending plan - MarketWatch

1. Germany proposes €1 trillion funding plan for infrastructure and defense. 2. Investor confidence surged; ZEW index rose to 51.6, highest since February 2022. 3. Rheinmetall (RHM) shares up 131% in 2025, driven by defense spending boost. 4. Germany's stock market reached record highs amid expectations of economic growth. 5. Fiscal policy changes may enhance growth outlook for manufacturing and defense sectors.

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FAQ

Why Very Bullish?

The significant increase in defense spending directly benefits RHM, leading to higher investor confidence and stock performance. Historically, similar fiscal boosts have resulted in substantial price gains for defense stocks.

How important is it?

The likelihood of RHM experiencing price volatility is high due to substantial government defense investments, which is a core business sector for RHM. The overall sentiment and expected fiscal policy changes are strongly positive.

Why Long Term?

The proposed spending plan indicates sustained government investment over coming years, which will likely enhance RHM's profitability trajectory in the long run due to defense contract advantages.

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