On 18 March, the German Bundestag approved historic constitutional amendments, paving the way for hundreds of billions in new debt financing for defense and infrastructure projects. The measures passed with 513 votes in favor and 207 against, comfortably surpassing the two-thirds majority threshold of 480 needed for constitutional changes.
The legislation, championed by chancellor-in-waiting Friedrich Merz, will exempt defense spending from Germany’s strict debt rules and establish a €500 billion ($546 billion) fund for infrastructure investments over the next 12 years, Le Monde and T-Online report.
“This is possibly the biggest spending package in the history of our country,” said SPD co-leader Lars Klingbeil during the debate, according to Luxembourg Times. “Germany must take on its leadership role in Europe.”
Defense spending exemption responds to security concerns
Speaking before parliament, Merz defended the measures by citing Russia’s war:
“It is a war against Europe and not just a war against the territorial integrity of Ukraine,” Merz told lawmakers.
The constitutional changes will allow Germany to exceed its debt ceiling for military spending, specifically permitting borrowing for defense expenditures above 1% of GDP – approximately €44 billion this year, according to T-Online’s reporting of politicians’ calculations.
Poland’s Tusk warns Russia will be ready for larger war in 3-4 years
Ukraine aid secured through constitutional changes
The legislation paves the way for an additional €3 billion in military aid to Ukraine in 2025, Merz told reporters after the vote, according to Defense News.
Liga says that this €3 billion package had been previously promised but was awaiting the constitutional changes to be implemented.
Merz had earlier emphasized that after the vote, outgoing Chancellor Scholz would be able to release the long-promised military aid to Ukraine.
Germany plans additional € 3 billion military aid package for Ukraine
Infrastructure, climate investment, and political maneuvering
Beyond defense, the package creates a €500 billion fund for infrastructure investment that will operate outside Germany’s debt brake rules, according to T-Online. The Greens secured a commitment that €100 billion would be dedicated to climate protection, according to Luxembourg Times.
The vote was strategically timed before the new parliament convenes on 25 March, when 20% of seats will be held by the pro-Russian AfD party. In the debate, opposition came from multiple parties, with AfD’s Bernd Baumann claiming Merz “wants to buy himself the chancellorship from the SPD and the Greens, like in a banana republic,” according to Le Monde.
European defense implications
Merz described the defense spending boost as “nothing less than the first major step towards a new European defense community” that could include non-EU members like Britain and Norway, according to Le Monde.
Defense News says that Europe is now engaged in a fundamental rethinking of its security priorities, with steps underway for the European Union to prepare loans of around €150 billion for military expenditures, expected to contribute to approximately €800 billion in new military investments.
Germany’s increased military spending comes as European countries are seeking greater independence from US security guarantees. Germany’s Armed Forces are already deeply integrated with those of the Netherlands, with Dutch combat brigades placed under German divisional command and the German Navy’s Sea Battalion under Dutch leadership.
Le Monde notes that Macron has renewed France’s offer to share its nuclear arsenal with other European countries as a potential replacement for a “possibly faltering US nuclear umbrella.” Meanwhile, Poland is reportedly “talking seriously” with France about this proposal, according to Defense News.
Next steps
Before becoming law, the legislation must still pass the Bundesrat, Germany’s upper house of parliament, on 21 March 2025, according to T-Online. The vote there is expected to succeed after Bavaria’s CSU and Free Voters agreed on 17 March to support the measures.
Germany’s federal states will receive €100 billion of the €500 billion for infrastructure and climate protection. Additionally, the states will collectively be permitted to take on debt up to 0.35% of GDP, compared to their current debt limit of zero.
Following the Bundesrat vote, coalition negotiations between Merz’s CDU/CSU and the SPD will continue, with Merz aiming to form a government by Easter on 20 April or shortly thereafter. If all proceeds according to plan, the new parliament will vote on Merz’s appointment as chancellor on 23 April.
Related:
- Germany ships 22 mine-resistant Vehicles and 15,000 artillery shells in latest aid for Ukraine
- Germany plans additional € 3 billion military aid package for Ukraine
- Germany to supply 100 IRIS-T missiles to Ukraine amid US aid halt
- Russian man jailed for life in Germany after killing two Ukrainian soldiers in Bavaria
- Politico: EU plans for fresh Ukraine refugee wave amid Trump threats
- Poland’s Tusk warns Russia will be ready for larger war in 3-4 years
- UK, Germany to take over Ramstein group leadership as US abandons military aid to Ukraine
- German FM Baerbock demands immediate release of € 3 billion in aid for Ukraine
