The City will take note of Berlin’s decisive action. A man convicted of driving a truck into a crowded Christmas market in Berlin, killing 12 and injuring dozens, has been sentenced to life in prison. The UK government was quick to praise the German justice system’s resolve, a rare moment of cross-Channel harmony on fiscal and judicial matters.
But beyond the moral satisfaction, this event underscores a deeper economic reality: the cost of terrorism is not just measured in lives lost, but in the billions poured into security, intelligence, and the erosion of consumer confidence. Markets hate uncertainty, and while this verdict provides a sense of closure, the scars on Germany’s retail sector, particularly during the critical holiday season, will take years to heal. The FTSE 100 might have shrugged off the news, but gilt yields remain sensitive to any hint of instability.
Investors should keep an eye on German bunds; if Berlin starts spending more on internal security, expect a widening spread. As for the UK, it’s a reminder that our own fiscal discipline is paramount. The Treasury cannot afford to underwrite endless security subsidies without choking off productive investment.
Let this be a lesson: the price of freedom is eternal vigilance, but also eternal fiscal prudence.
