Germany Approves Historic Increase in Defence Spending

Wed Mar 19 2025 00:03:06 GMT+0200 (Eastern European Standard Time)
Germany Approves Historic Increase in Defence Spending

Germany's parliament votes to boost defense spending, signaling a major shift in its defense policy.


Germany has made a landmark decision to significantly boost its defense spending, a move that marks a pivotal shift in the nation's approach to security.

In a historic vote, German lawmakers from the Bundestag have approved a measure that allows a major increase in defense and infrastructure investment, a step that has profound implications for both Germany and European defense policy as tensions persist in light of recent geopolitical conflicts.

On Tuesday, the Bundestag achieved the necessary two-thirds majority to pass the proposal, enabling the country to exempt defense expenditures from existing stringent debt regulations. This legislative change paves the way for the establishment of a €500 billion ($547 billion; £420 billion) infrastructure fund intended to bolster national and security investment.

Friedrich Merz, who is poised to take on the role of Chancellor, stated that Germany has harbored an erroneous sense of security over the past decade. During the parliamentary session, he framed the decision as a foundational step toward fostering a new European defense community that would include nations beyond the European Union.

This exemption from Germany's constitutional "debt brake," which limits federal borrowing to just 0.35% of the GDP, represents a significant departure from the country's financial norms. Merz, whose Christian Democratic Union (CDU) party recently won the general election, has been swift in proposing these changes, citing growing concerns over the stability and commitment of the U.S. to European defense, particularly in light of former President Trump's interactions with Russia.

Recognizing the urgency of the situation, Merz strategically chose to push the legislation through the existing parliament before a new session begins on March 25, when political calculations might shift. However, the Bundesrat, the upper house representing state governments, must also endorse the proposal with a two-thirds majority on Friday for it to be officially legislated. Opposition from the far-right Alternative for Germany (AFD) and the far-left Linke parties complicates the proposal's path.

Despite the challenges, Merz has expressed ambitions to form a governing coalition by Easter, although coalition negotiations in Germany are historically lengthy and complex. The push to enhance Germany's defense spending comes amid rising tensions due to conflicts such as the war in Ukraine, signalling a possible new chapter in European security underpinning.

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