Breaking News

Germany Approves Historic Increase in Defense and Infrastructure Spending

Germany Approves Historic Increase in Defense and Infrastructure Spending

Berlin, March 19, 2025 – The Europe Today: German lawmakers have voted in favor of a landmark decision to significantly increase defense and infrastructure spending, marking a dramatic shift for the traditionally debt-averse country and potentially reshaping Europe’s defense strategy.

On Tuesday, the Bundestag passed the proposal with a two-thirds majority, a crucial threshold for such a monumental change. The new law will allow defense and security spending to bypass Germany’s strict debt rules and establish a €500 billion ($547 billion; £420 billion) infrastructure fund. This move comes amid growing concerns over regional security, particularly in light of Russia’s ongoing invasion of Ukraine and the evolving commitment of NATO allies, including the United States under former President Donald Trump.

Friedrich Merz, the driving force behind the proposal and the anticipated new chancellor, emphasized the importance of the vote, stating that Germany had “felt a false sense of security” over the past decade. “The decision we are taking today… can be nothing less than the first major step towards a new European defense community,” Merz remarked during the debate, noting that this effort would extend beyond the European Union, incorporating other nations as well.

EU Commission President Ursula von der Leyen hailed the vote as “excellent news,” recognizing Germany’s determination to enhance its defense capabilities. Speaking alongside Danish Prime Minister Mette Frederiksen, von der Leyen highlighted the vote as a clear signal of Germany’s commitment to a stronger European defense posture.

Frederiksen also expressed her support, calling the decision “fantastic news for all Europeans,” as it underscores Germany’s pivotal role in the continent’s security.

Despite the approval in the Bundestag, the proposal still requires confirmation from the Bundesrat, Germany’s upper house of parliament, where state government representatives must also approve the measures by a two-thirds majority. That vote is set to take place on Friday.

If approved, this unprecedented step would signal a significant shift in Germany’s defense policy and could have far-reaching implications for European security in the face of rising geopolitical tensions.