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Germany's historic turnaround, €1 trillion to strengthen military and infrastructure

2025-03-05 11:10:24Kosova&Bota SHKRUAR NGA REDAKSIA VOX
Germany's historic turnaround, €1 trillion to strengthen military and
Friedrich Merz

Fearing a collapse of the Western alliance under the Donald Trump administration, Germany's political establishment has approved a historic plan that could see up to 1 trillion euros in defense and infrastructure spending over the next decade.

A deal reached between the leaders of the Christian Democrats and Social Democrats has agreed to increase defense spending and a new 500 billion euro fund for infrastructure investment, a move that could result in major changes to Germany's fiscal policy. The measures, expected to be approved in the coming months, are intended to fill the gap left by the US administration's withholding of military aid to Ukraine.

Friedrich Merz, leader of the CDU, said that these decisions are necessary to protect the infrastructure of security and peace in Europe, emphasizing that defense spending cannot be postponed any longer after recent moves by the US administration.

For the first time, the debt ceiling, which is part of the German constitution, will be effectively waived for military spending exceeding 1% of GDP. The change will give the government an unprecedented opportunity to invest more in Germany's military strength at a time when security risks are rising.

This plan comes after the last elections, where the CDU won by a clear margin and is now negotiating the formation of a coalition with the SPD. Meanwhile, the adopted strategy also includes a major economic stimulus for the German economy, which is in recession for the third year in a row.

However, the adoption of these measures is not guaranteed. In order to implement the constitutional changes and lift the debt ceiling, parties need to secure a two-thirds majority in the Bundestag. With the rise of the far right in parliament, this could prove a major challenge for the current coalition. However, the Green party, which is essential for such a majority, has not yet given its support to the plan.

At the same time, Merz and SPD leaders have agreed to send an urgent motion to the Bundestag to allocate an additional 3 billion euros for military support for Ukraine.


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