Germany is on the cusp of a strategic shift as Chancellor-designate Friedrich Merz pushes for bold reforms to increase military spending. The move comes amid growing uncertainty and rising tensions with America, a longtime friend and protector.
Merz’s center-right Christian Democrats have introduced a package of measures aimed at rebuilding Germany’s aging infrastructure and military, despite lacking the necessary votes to pass the changes in the current Parliament. The proposal would allow for hundreds of billions of euros in new spending, potentially exceeding trillions.
The urgency behind Merz’s plan is fueled by President Trump’s moves to undo decades-long American security guarantees in Europe and his sharp pivot on support for Ukraine. Merz has dramatically increased military spending proposals, abandoning campaign promises to avoid heavy borrowing while strengthening defense.
Merz’s deal with the Social Democrats would allow unlimited borrowing for any spending exceeding 1% of the nation’s annual economy, a level already exceeded by Germany’s defense spending. As part of the agreement, the government would borrow $500 billion over a decade to upgrade domestic infrastructure.
The proposal has sparked concern among experts, who warn that the far left and far right gained seats in recent elections could block major borrowing reforms in the new Parliament. Green party co-chairwoman Franziska Brantner stated that pouring money into everything without defining the purpose would be unsustainable.
Merz’s move to pass constitutional changes while the old Parliament is still in power was seen as a cunning political maneuver, aiming to ensure a fiscal pillow for a centrist government. The session on Thursday marked only the second time in modern history that German lawmakers met after an election and before the swearing-in of the new Parliament.
As negotiations continue between Merz’s party, the Social Democrats, and the Greens, the stakes are high. History is watching as Germany navigates this critical juncture, with the country’s future economic stability hanging precariously in the balance.
Source: https://www.nytimes.com/2025/03/13/world/europe/merz-germany-spending.html