Why It Matters: Germany has long neglected military spending. Despite intense pressure from the United States, Germany last spent 2 percent of its G.D.P. on defense in 1991, a year after the reunification of the former East and West German nations, according to statistics from the World Bank. The United States is using incentives, including tax breaks, to lure businesses in the green energy and technology sectors. “Germany is increasingly falling behind when it comes to investment and location decisions,” said Tanja Gönner, general director of the German Federation of Industries.

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Persons: Marcel Fratzscher, Lindner, ”, Tanja Gönner Organizations: World Bank, German Institute for Economic Research, German Federation of Industries Locations: Germany, United States, West, Russia, Ukraine