Germany is moving quickly to secure new defense funding as former U.S. President Donald Trump signals a reduced role in supporting Ukraine. German leaders fear that Europe must now rely more on itself for security. Political leaders in Berlin are working to approve a new funding plan before the next Bundestag takes office.
Merz Calls for Urgent Defense Spending
CDU leader Friedrich Merz stressed the need for immediate action. “Europe must show that it can defend itself without full U.S. backing. The urgency is clear,” he said. However, Germany’s strict budget rules make finding the necessary billions a challenge.
Previously, Merz suggested that existing funds could cover defense needs, but that option is no longer viable. The government must now find new sources of funding, and the two main solutions under discussion are changing Germany’s debt brake or creating another special defense fund.
Debt Brake Reform Faces Political Challenges
Germany’s debt brake law limits annual borrowing to 0.35% of GDP. The SPD and Greens support reforming this rule to allow more government spending, while the CDU has resisted such changes. But Trump’s recent meeting with Ukrainian President Volodymyr Zelensky and Vice President J.D. Vance, which ended in diplomatic tension, has changed the CDU’s position. Some members now recognize that Germany may need to act without expecting future U.S. military support.
Despite these concerns, Merz prefers to delay debt brake reform until the next Bundestag convenes on March 25. However, amending the law requires a two-thirds majority, which is now harder to achieve. The AfD and Left Party, both of which gained seats in the last election, hold enough votes to block changes. This means major parties must find common ground to move forward.
Special Defense Fund More Likely
A more feasible option is creating a new special defense fund. Germany previously set up a €100 billion fund for the Bundeswehr after Russia invaded Ukraine, and the CDU supported it. Creating a new fund would require another two-thirds majority, but leaders believe they may be able to secure enough votes.
Economists argue that a significant investment is needed to send a strong message to Russia. Some propose a package of €800-900 billion split between military and infrastructure improvements.
Economic Experts Call for Large-Scale Spending
Leading economists, including Clemens Fuest, Michael Hüther, Moritz Schularick, and Jens Südekum, have proposed two major spending initiatives:
- €400 billion for the Bundeswehr to strengthen Germany’s military capabilities.
- €400-500 billion for infrastructure, addressing Germany’s urgent need for improvements in roads, railways, and schools.
These proposals face strong opposition. The Left Party supports infrastructure investment but opposes military spending. The AfD, led by Tino Chrupalla and Alice Weidel, rejects new debt entirely. They argue that Germany should follow the “peace course” of the new U.S. administration instead of increasing military spending.
Emergency Vote in Outgoing Bundestag
To overcome political roadblocks, CDU and SPD leaders are considering a last-minute vote before the new Bundestag takes office. A special session could be held next week, allowing lawmakers to approve funding before political shifts make it even harder.
Coalition leaders plan to meet with outgoing Chancellor Olaf Scholz on Wednesday. They hope to reach a decision before he travels to the EU summit in Brussels on Thursday.
Germany’s Future Defense Strategy
As Germany navigates these challenges, leaders are under pressure to balance military needs with economic concerns. The country must prepare for a future where Europe relies less on U.S. defense support. The decisions made in the coming days will shape Germany’s security strategy for years to come.
For more updates on this topic, visit New York Mirror.