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German Budget Committee approves ThyssenKrupp submarine deal worth 4.7 billion euros

The German budget committee approved the purchase of four subs manufactured by ThyssenKrupp in a deal valued at 4.7 billion euro ($4.92 billion), according to the defence ministry on Wednesday.

Boris Pistorius, Minister of Defence, said that the purchase was one of 38 "25-million-euro proposals" for projects in defence and equipment approved by the committee Wednesday.

He added that 97 of these proposals have been approved this year.

The budget committee of the parliament must approve any military purchase exceeding 25 million Euros.

Pistorius stated that "with these projects, we invest in all branches of military."

Olaf Scholz, the German Chancellor, surprised his allies when he announced a "Zeitenwende", a historical turning point in German. He also announced a 100 billion euro special fund for the military to get it back on track.

The top-ups will enable Germany to reach NATO's goal of member states spending 2% or more of their national production on defence in the next three year period, for the first time since the end the Cold War.

There is some uncertainty as to how the fund will continue to meet its spending target after it has run out in 2028.

(source: Reuters)