German lawmakers voted to allow a significant increase in defense and infrastructure spending. This is a change in the earthquake in a country that could restructure European defences.
Most two-thirds of the MPs needed to make the change approved the vote on Tuesday.
The law exempts defense and security spending from strict German debt regulations and creates an infrastructure fund of 500 million euros ($54.7 billion, £4200 billion).
This vote has been a historic move for Germany, which has traditionally settled on debt, and could become very important for Europe after Russia’s full-scale invasion of Ukraine was crushed and President Donald Trump signaled his uncertain commitment to NATO and Europe’s defense.
However, Bundesrat, a representative of the Senate’s state government, must approve the move even by a two-thirds of majority before it officially becomes law. That vote will be set on Friday.
Friedrich Merz, the man behind these plans and expected to be quickly identified as Germany’s new prime minister, told the House during discussions on Tuesday that he had “feeling false relief” over the past decade.
“The decision we are making today is nothing more than the first major step into the new European defence community,” he said, adding that it includes countries “not members of the European Union.”
Despite the tight vote, lawmakers ultimately voted in favor of a 513-207 change.
Under this measure, defence spending will be exempt from Germany’s so-called debt brakes. This is a constitutional law in the country that strictly restricts the federal government from borrowing strictly to just 0.35% of Germany’s GDP.
Mertz, who won the CDU party in Germany’s general election last month, proposed action immediately after its victory.
In an interview on Sunday, he noted that the US could pull back from defending Europe and bring back talks with Trump’s Russian President Vladimir Putin, “the situation has worsened in recent weeks.”
“That’s why we have to act fast,” Meltz told public broadcaster ARD.
It is a huge political victory for Merz, who will now have access to hundreds of millions of euros to invest in the state once he comes to power as prime minister. Some Germany calls it the “fiscal bazooka.”
It is also an important moment for Ukraine.
The defense plan, approved by Bundestagg today, allows spending on aid to states “attacked in violation of international law” to exempt the debt brakes.
This will allow Prime Minister Olaf Scholz, who is currently on the move, to release 3 billion euros with assistance to Ukraine as early as next week.
Meltz chose to drive the change through the old council, knowing that voting arithmetic is more advantageous than after March 25th, when the new parliamentary session begins.
The far-right AFD, both who worked well in the February elections, and the far-right Linke, who were on the far-right, are opposed to Mertz’s plans.
After the election victory, Merz has yet to agree on a coalition contract to govern Germany, and has announced an ambitious plan to introduce a government by Easter.
However, alliance negotiations in Germany can be drugged for several months at a time.
