Tue Mar 18 18:14:01 UTC 2025: ## Germany to Suspend Debt Brake for Massive Defense and Infrastructure Spending
**Berlin, Germany –** Germany’s incoming Chancellor, Friedrich Merz, is pushing for a significant overhaul of the nation’s strict debt rules to fund a massive increase in defense spending and a large-scale infrastructure investment program. The proposal, which requires a two-thirds majority in parliament, would temporarily suspend the “debt brake” – a constitutional rule limiting borrowing – to allow for expenditures exceeding 1% of GDP on defense and a €500 billion ($544 billion) investment fund for infrastructure over the next 12 years.
The move, supported by the Social Democrats and Greens, comes amidst growing concerns about Russia’s aggression in Europe and doubts regarding the strength of the trans-Atlantic alliance. The plan includes allocating €100 billion from the investment fund to climate-related projects, a key demand from the Greens.
Mr. Merz, whose party previously opposed increased borrowing, argued the necessity of the plan, citing the threat posed by Russia and the urgent need to modernize Germany’s infrastructure. He described the initiative as a “first step toward a new European defence community,” potentially encompassing nations outside the EU.
The proposal faces opposition from the far-right Alternative for Germany, which strongly defends the debt brake, and the Left Party, which while opposing the brake, harbors skepticism toward the military spending. While the governing coalition has enough votes in the outgoing Bundestag to pass the measure, its approval in the Bundesrat (upper house) initially seemed uncertain. However, last-minute support from Bavaria secured the required two-thirds majority there as well. The plan passed its first hurdle in the Bundestag on March 18th and faces a final vote in the Bundesrat on March 21st. If approved, the new government will begin implementing this ambitious spending plan.
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