Merz Pledges Major Defence and Infrastructure Investments for Germany

Friedrich Merz, expected to lead Germany, unveiled a plan to allocate hundreds of billions of euros for defence and infrastructure improvements, emphasizing the urgency for increased military spending due to current global tensions.

Friedrich Merz, the potential next chancellor of Germany, has made a bold commitment to strengthen the nation’s defence and critical infrastructure with significant financial investments. As he prepares to form a government by late April, Merz announced a strategic plan aimed at raising hundreds of billions of euros in response to escalating threats to freedom and peace in Europe.

"In light of the current challenges facing our continent, our approach to defence must be clear: we will do 'whatever it takes'," Merz declared during a recent press conference. His conservative party won the recent elections, and he is now negotiating with centre-left coalition partners to bring new proposals to parliament next week, highlighting an urgency for substantial defence spending adjustments.

Merz did not shy away from criticizing recent American government actions, specifically referencing President Trump’s handling of Ukraine’s calls for support. He stressed that European leaders must demonstrate an ability to act independently while also reinforcing the importance of U.S. alliances. “Germany relies on the U.S. for mutual commitment support, yet we recognize that our defence resources need to be considerably improved,” he stated.

Central to Merz’s plan is a proposed special fund of €500 billion aimed at revitalizing Germany’s deteriorating infrastructure. Additionally, he aims to amend existing fiscal rules to facilitate increased investment in defence. Germany’s current “debt brake” limits budget deficits; however, under the new proposal, necessary defence expenditure exceeding 1% of the nation’s GDP would be exempt from these restrictions without any specified upper limit.

Despite being the largest supporter of Ukraine in Europe, Germany’s armed forces remain underfunded. Previous initiatives, including a €100 billion fund initiated by the outgoing Scholz government following Russia’s invasion of Ukraine last year, have already seen substantial allocation. To satisfy NATO’s defence spending goal of 2% of GDP, Germany will need to secure an additional €30 billion annually, and experts suggest that the target may need to rise to as much as 3%.

Merz's plans arrive just before a crucial EU summit on Ukraine and European defence, where discussions regarding Germany's spending strategy will be pivotal. Given that the former coalition government struggled to reform debt restrictions, the success of Merz's proposals could hinge on overcoming legislative challenges. The current debt brake, embedded in Germany's constitution, necessitates a two-thirds parliamentary majority for amending, an obstacle complicated by the influence of far-right and left parties.

Outgoing Defence Minister Boris Pistorius acknowledged these proposals as vital steps, even as coalition discussions are still ongoing. He emphasized that the removal of defence expenditures from national debt considerations is primarily about safeguarding the nation. Meanwhile, alongside Merz, Social Democrat leader Lars Klingbeil outlined the investment structure, highlighting that road, railway, and essential infrastructure improvements are necessary for stabilizing the nation’s operational capabilities.