In Unterlüß, Lower Saxony, Europe’s largest ammunition factory began production yesterday. What started clandestinely is now being publicly scaled with full firepower: the European Union is building its own war economy.
In the good old days in Germany, recessions were typically masked by state-funded infrastructure programs. The concept worked as long as the state did not overgrow, overregulate, or force the private sector into a destructive ideological agenda, as is the case with the green transformation. In other words: the economy was always able to clear away the debris left behind by the state.
Southern Europe Could Never Recover
In Southern Europe, where the state’s role has traditionally been high, monetary policy generous, and handling of public funds notoriously lax, this policy left nothing but infrastructure ruins and industrial wastelands. Local economies were never able to productively absorb the artificial credit distributed by Brussels. The fatal consequences of this pseudo-boom still shape the landscape today.
For economic historians, present-day Europe has long been a fascinating study object. Crisis followed crisis, with the public sector intervening each time with increasing volume. The attempt to install the Green Deal, a Keynesian pseudo-economy, must be understood in this context. That Germany’s defense company Rheinmetall yesterday launched Europe’s largest ammunition plant in Unterlüß fits into this narrative.
The company invested half a billion euros to provide an annual capacity of up to 350,000 rounds by 2027. 500 new jobs are to be created, celebrated by politicians as a turning point and the beginning of a pan-European defense architecture.
