German lawmakers have approved a defence and infrastructure expenditure package suggested by chancellor-in-waiting Friedrich Merz in response to concerns about the US attitude on the Ukraine crisis and Europe’s security.
The plans, which might lead to more than one trillion euros in expenditure over the next decade, have been dubbed a fiscal “bazooka” for Europe’s largest economy.
The measures, which constitute a drastic change for a country that has generally been unwilling to incur big amounts of debt, were approved with 513 votes in favor and 207 against.
Speaking to parliament before of the vote, conservative Merz emphasized the importance of strengthening the country in the face of Russia’s “war of aggression against Europe.”
Merz’s CDU/CSU and their potential coalition partners, the Social Democrats (SPD), intend to exclude defence expenditure from Germany’s tight debt limits and establish a €500 billion ($545 billion) fund for infrastructure development over 12 years.
The funding plan is designed to promote local investments while also clearing the way for a further €3 billion in support for Ukraine in 2025.
Merz, 69, had urged lawmakers to approve the measures at a time when US President Donald Trump’s outreach to Russia and hostility towards Ukraine have shaken Europe and cast doubt over the future strength of transatlantic ties.
Merz said strong relations with the US were “indispensable” but Europe needed to do more to ensure its own security and Germany should play a leading role.
The spending boost is “nothing less than the first major step towards a new European defence community” that could also include non-EU members like Britain and Norway, he added.
Defence Minister Boris Pistorius, from the SPD of outgoing Chancellor Olaf Scholz, justified the mega-spending by saying “we are facing a new era for Europe, for Germany, for NATO, and for future generations.”
He argued that boosting defence on the continent would strengthen the transatlantic alliance in the long term “and place it on two legs, namely North America and Europe.”
Merz’s conservatives, who won an election in February, agreed the plans to boost Germany’s under-resourced military and ailing economy as part of their initial coalition talks with Scholz’s SPD in early March.
The Greens had threatened to withdraw their support, but a settlement was reached late last week, with Merz agreeing to allocate €100 billion of the infrastructure fund to climate protection measures.
The ideas must still be approved by the upper house of parliament on Friday, with a two-thirds majority.
Coalition negotiations will then resume between the two major parties, with Merz hoping to have a government in place by Easter, April 20 or shortly thereafter.
