Germany’s Bundestag has approved a significant easing of the country’s debt restrictions to enable an unprecedented increase in defense and infrastructure spending. The vote, which took place on March 18, 2025, saw 512 lawmakers in favor and 206 against, surpassing the required two-thirds majority.
The measure allows the government to bypass Germany’s strict “debt brake,” permitting unlimited borrowing to finance defense, civil protection, intelligence services, and cybersecurity. The approved plan includes a €500 billion ($547 billion) fund for infrastructure investments, with €100 billion dedicated to climate policies, a key demand from the Greens in exchange for their support.
This decision marks a major shift for Friedrich Merz, leader of the Christian Democratic Union (CDU), who had previously opposed deficit spending. However, with growing concerns over European security amid war in Ukraine and uncertainty regarding the United States’ NATO commitments, Germany is taking a more assertive stance on defense.
The package also includes an additional €3 billion in military aid for Ukraine. Merz, who is expected to become Germany’s next chancellor, described the vote as “the first major step towards a new European defense community.”
Germany’s move has been welcomed by European leaders. European Commission President Ursula von der Leyen called it “excellent news,” while NATO Secretary General Mark Rutte stated that it demonstrated Germany’s commitment to European security. French President Emmanuel Macron also praised the decision during a visit to Berlin.
The proposal now moves to the Bundesrat, Germany’s upper house, where it must also secure a two-thirds majority. If approved, this massive spending initiative will mark a turning point in Germany’s defense policy and economic strategy, reinforcing its role in European security.