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Germany Studies Tapping Coal-Exit Funds for Defense Projects

Germany is considering re-routing existing subsidies for eliminating coal-fired power plants to help defense manufacturers build new production facilities, according to people familiar with the matter.

The discussions between Germany’s federal government and regional states are aimed at providing the country’s armed forces with more weapons and ammunition and creating jobs in regions that are affected by the shift away from coal, said the people, who asked not to be identified as the talks are confidential.