As U.S. President Donald Trump shifts his stance on supporting Ukraine, German leaders are urgently looking for ways to secure billions for military spending. With the upcoming Bundestag elections on the horizon, the government is racing against time to find a solution to boost Germany’s defense capabilities.
Merz Pushes for Urgent Defense Spending
Friedrich Merz, leader of the Christian Democratic Union (CDU), has voiced concerns about Germany’s reliance on U.S. support. “Germany must be able to act independently,” he stressed, acknowledging the changing dynamics in global geopolitics. This urgent shift comes as Trump’s policy on Ukraine has become more uncertain, especially after his tense meetings with Ukrainian President Volodymyr Zelensky and Vice President JD Vance.
Previously, Merz had suggested that funding for defense could be sourced from Germany’s existing budget. However, this plan is no longer feasible, as rising political pressures and defense needs continue to mount. As the CDU/CSU and the Social Democrats (SPD) continue negotiations for a new coalition, they are now exploring different options to address this urgent challenge.
The Debt Brake Dilemma
One of the key issues under debate is the potential reform of Germany’s “debt brake,” a constitutional rule limiting the government’s ability to borrow beyond 0.35% of the country’s GDP annually. The SPD and Greens have long advocated for loosening the debt brake to allow for more government spending, but the CDU, traditionally cautious on financial matters, has been resistant. However, after Trump’s meeting with Ukrainian officials, conservative politicians are beginning to reconsider their position on the matter.
Although CDU leaders, including Merz, prefer to delay any changes to the debt rule until the new Bundestag convenes, this strategy may face opposition. Reforming the debt brake would require a two-thirds majority in parliament, which could be difficult to secure, particularly with the growing influence of the far-right Alternative for Germany (AfD) and the Left Party, both of which have their reservations about expanding government debt.
Special Defense Fund Gains Traction
Rather than pushing for immediate debt rule changes, Merz and his colleagues are leaning towards creating a new special defense fund. This approach has become increasingly likely given the urgency of military needs in light of Russia’s ongoing war in Ukraine. In response to the conflict, the previous government had already set up a €100 billion Bundeswehr (German military) fund, with significant backing from the CDU. Now, a second special fund is on the table.
Although such a fund would still require a two-thirds majority in the Bundestag, many believe it is a more politically viable option than reforming the constitution. Establishing this fund would send a strong signal to Russia about Germany’s commitment to strengthening its military capabilities, especially as tensions continue to rise in Europe.
Economists Call for Comprehensive Investment
In addition to military spending, Germany is facing an urgent need to upgrade its aging infrastructure. Prominent economists, including Clemens Fuest, Michael Hüther, Moritz Schularick, and Jens Südekum, have proposed two major budget initiatives. The first calls for €400 billion to bolster the Bundeswehr, while the second suggests a budget of €400 to €500 billion for necessary infrastructure projects, such as road repairs, railway upgrades, and school renovations.
However, passing these proposals will be challenging. The Left Party has expressed support for infrastructure spending but firmly opposes any expansion of the military budget. Meanwhile, the AfD is pushing back against any further debt, advocating instead for a more “peaceful” approach in line with the new U.S. administration’s strategy.
The Path Forward
To avoid gridlock, CDU and SPD leaders are considering calling a special vote in the outgoing Bundestag before it dissolves. This session could take place as early as next week, allowing lawmakers to secure funding for military and infrastructure spending before new parliamentary dynamics make negotiations even more complicated.
Chancellor Olaf Scholz is set to meet with coalition leaders on Wednesday to discuss these options in more detail. He will also be traveling to the EU summit in Brussels on Thursday, where he will have further discussions about Germany’s role in European defense and security matters.
As global tensions continue to rise and the geopolitical landscape shifts, Germany’s leaders are facing mounting pressure to find a way to balance military spending and domestic investments. With the clock ticking, it remains to be seen whether the outgoing Bundestag can approve the necessary funding before the new parliament takes office later this month.
For more updates on this issue and other global news, visit Euro News 24.