Tue Mar 18 17:37:22 UTC 2025: ## Germany Approves Massive Spending Plan, Ending Decades of Fiscal Conservatism

**Berlin** – Germany’s parliament has approved a sweeping plan to dramatically increase government spending, marking a significant departure from decades of fiscal restraint. The move, approved by the Bundestag on Tuesday, allocates hundreds of billions of euros to boost infrastructure investment and bolster military spending in response to escalating geopolitical tensions.

The legislation, backed by the conservative CDU/CSU and the Social Democratic Party (SPD), creates a €500 billion ($546 billion) fund for infrastructure projects and relaxes constitutional borrowing limits to facilitate increased defense spending. This comes as Germany and its European allies seek to strengthen their defenses amid Russia’s aggression and perceived shifts in US foreign policy.

Future Chancellor Friedrich Merz, whose conservatives are currently negotiating a coalition government with the SPD, framed the plan as a crucial step towards a new European defense community. He highlighted the need for Germany to assume a leadership role in bolstering European security in the face of an “aggressive Russia” and an “unpredictable United States.” While emphasizing the importance of transatlantic cooperation, Merz stressed the necessity for Europe to strengthen its own defenses.

The legislation still requires approval from the Bundesrat, the upper house representing Germany’s federal states. However, this hurdle appears cleared after the Bavarian Free Voters agreed to support the bill on Monday. The current parliament’s swift passage of the legislation is driven by concerns that the incoming Bundestag, with a larger presence of far-right and far-left parties, might block the plan. The rapidly changing geopolitical landscape also necessitated this expedited timeline, according to Merz. The plan is expected to receive final approval shortly.

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