Germany: Thousands of Billions of Euros for Weapons and Roads

The German Bundestag votes yes to constitutional amendments enabling loans of around a thousand billion euros for defense and infrastructure. We must rebuild our defense capabilities, says the country's likely future Chancellor Friedrich Merz.

» Published: March 18 2025

Germany: Thousands of Billions of Euros for Weapons and Roads
Photo: Ebrahim Noroozi/DPA/AP/TT

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500 billion in new loans for roads, railways, bridges, and other infrastructure. And a relaxation of budget rules, which opens up for defense investments of the same magnitude, making Germany a global heavyweight not only economically, but also militarily.

The incoming government in Berlin has not even taken office, but the governing parties managed to push through the historic financial package with the help of the Greens. This after promises of climate investments of around 100 billion euros, which will be taken from the newly established infrastructure fund.

"War of aggression against Europe"

Christian Democrat Friedrich Merz (CDU), who previously said no to a reform of the constitutionally enshrined debt brake, reversed his stance after the election victory in February. Together with the future coalition partner Social Democrats (SPD), an agreement was reached to change the constitution to enable the payment for massive investments in both defense and infrastructure with new credits.

The reason is the deteriorating security situation in the world, which has become even more serious in recent weeks, said Merz in an interview over the weekend, where he pointed to the USA's and Russia's rapprochement and Trump's unclear view on NATO cooperation. Ahead of Tuesday's vote, CDU leader called the Ukraine war an "war of aggression against Europe".

For defense, all expenditures exceeding one percent of GDP (around 43 billion euros) are exempt from the strict borrowing rules and can be financed with loans. In addition to the budget for the Bundeswehr, this includes, among other things, civil defense, intelligence services, and cybersecurity.

Hurry to vote

Since the fringe parties Die Linke and AFD together have more than a third of the seats in the incoming federal parliament, it was urgent for Merz to get a vote with the outgoing parliament, where it was enough with the Greens' votes to reach the qualified majority required. The Greens initially said no, but reversed after getting through demands for money for climate protection. 513 members voted yes in Tuesday's vote, 24 more than the 489 required.

The unusual procedure and what some see as a broken promise from Merz has led to criticism. The Constitutional Court has received several complaints, which have been dismissed.

In order to come into force, the package also needs to be approved by the Federal Council, where the states are represented. The vote is expected to take place on Friday and appears to be able to go through with a narrow margin.

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By TTEnglish edition by Sweden Herald, adapted for local and international readers

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