Germany votes for defence spending reform
The German Parliament passed an amendment on March 18 to loosen enduring restraints on federal defence spending, offering the prospect of increasing military expenditure for Europe's largest economy.
This change – which relaxes protocols on some areas of federal expenditure – will allow defence and certain security budgets to increase beyond the confines set by the country’s restrictions on budget deficits, also known as the ‘debt brake’.
Moreover, the amendment allows for the creation of a special fund of €500bn ($547bn) for “additional investments in infrastructure and for additional investments to achieve climate neutrality by 2045.”
A two-thirds majority of all members was required for the draft to be passed; 512 members voted in favour of the change while 206 voted against the amendment.
The decision represents a considerable victory for the Christian Democratic Union leader, and future German Chancellor, Friedrich Merz, as he hopes to establish a stronger defence footing.