Mels said after historic agreement on defense and spending, Germany is back

Germany’s Conservative leader Friedrich Merz has won a huge financial plan to transform defense and infrastructure ahead of austerity vote in parliament next Tuesday.

Merz, who aims to lead the government with the Social Democrats in the coming weeks, is eager to push for spending on defense and squeaky infrastructure.

After winning the election last month, he said strengthening Europe was his absolute priority, as President Donald Trump seemed indifferent to fate.

After 10 hours of talks with the Greens, he said the deal sent a clear message to allies in his country: “Germany is back.”

He added: “Germany is making a significant contribution to the defense of freedom and peace in Europe.”

Merz, expected to become Germany’s next prime minister, bids for debt and expenditure reforms through the outgoing parliament before the newly elected MP can take a seat in the Bundestag on March 25.

The far-right alternative to German (AFD) parties doubled the number of MPs in the election, and if Meers fails to proceed in time, it could endanger Meerz’s spending drivers. The left also opposes reform.

Under the German constitution, Melz needs a two-thirds majority to pass. With the support of the Greens and Social Democrats, he should succeed.

The AFD and the left raised an emergency motion to challenge the outgoing parliamentary meeting next week failed in the Constitutional Court on Friday, allowing the vote to continue.

Conservative Christian Democratic Party leader says his party, Social Democratic Party and Green Party involve tripartite plans:

• Spending on defense, civil affairs and intelligence is a big driver – spending more than 1% of GDP (economic output) is exempt from debt restrictions
• A special €50 billion (£4.22 billion) infrastructure fund to cover climate protection schemes for 10 years
• Sixteen states in Germany will be allowed to borrow 0.35% of GDP above the debt limit.

The defense program also allows for the expenditure of aid on “countries attacked in violation of international law” to be free from so-called debt braking.

This will allow outgoing Prime Minister Olaf Scholz to issue 3 billion euros to Ukraine as early as next week.

Germany’s last government collapsed in late 2024 because of the divisions in debt restrictions caused by Prime Minister Angela Merkel’s government during the 2009 financial crisis.

This means that the government cannot borrow more than 0.35% of Germany’s total economic output, while the country’s railway and bridge infrastructure has squeaked over years of underinvestment, and ministers have tried to promote military spending.

Social Democratic Party chairman Lars Klingbeil said Friday’s deal sent a “historical signal” to Germany, which would make the country stronger and “enhance Germany’s role in Europe.”

Although the Greens were in the old government, they would not be part of the Meers coalition. However, the party is pleased to receive 100 billion euros of climate funding to “go in the right direction”.

Annalena Baerbock, the outgoing Green Foreign Secretary, also praised the defense plan for not only making Germany safer, but also sending a clear signal to Ukraine, Europe and the world.

She added that Germany was responsible during turbulent times.

AFD co-leader Alice Weidel was impressed and accused Merz of bending the constitution and posing a “huge burden” for future generations.

“It’s nothing more than an economic coup,” she complained.