Friday to strengthen the country’s military and upgrade critical infrastructure. The plan, worth 500 billion euros ($545 billion), has been pushed by Friedrich Merz, leader of the centre-right CDU/CSU, who is likely to become the next chancellor.
Historic Shift in Economic Policy
The spending package, often referred to as a “bazooka,” marks a major shift in Germany’s traditionally conservative economic policy. It allows defence spending to exceed 1% of GDP, bypassing the country’s strict debt rules introduced in 2009. The plan allocates funds over 12 years, paving the way for over one trillion euros in spending to boost Europe’s largest economy, which has been shrinking for the past two years.
Germany Aims for Military Independence
Germany’s move comes in response to US President Donald Trump’s shift away from traditional alliances, prompting concerns about European security. Bavaria’s state premier Markus Soeder emphasized the need for Germany to strengthen its army and reduce reliance on the United States.
“We must do everything to ensure that Germany becomes one of the strongest armies in Europe and can protect itself,” Soeder said.
Infrastructure Upgrades and Economic Revival
The plan also includes significant investments in Germany’s infrastructure, with long-overdue upgrades to roads, bridges, and rail lines. Soeder likened the package to a “German Marshall Plan,” comparing it to the US-led post-World War II reconstruction effort in Europe.
Political Reactions and Controversy
The spending plan required a two-thirds majority and was approved by 53 of 69 members in the Bundesrat after passing the lower house earlier in the week. However, some states governed by the far-left BSW party and the debt-averse Free Democrats (FDP) refused to approve the plan.
Geopolitical Concerns Drive Urgency
Boris Rhein, CDU leader of the central state of Hessen, highlighted the urgency of the situation, pointing to Trump’s public berating of Ukrainian President Volodymyr Zelensky. “Germany cannot rely on military help from the United States,” he warned, calling for swift and decisive action to protect Germany and Europe.
