Germany’s next likely government is racing against the clock to approve a colossal €1 trillion defense and infrastructure investment plan before the newly elected Bundestag convenes on March 25. The CDU-SPD coalition, led by incoming Chancellor Friedrich Merz, aims to bypass fiscal constraints by amending the constitution—an effort that hinges on securing Green Party support.
Half of the proposed funds would bolster the German military, while the rest would fuel infrastructure and industrial projects. However, the CDU and SPD will soon lose their current two-thirds majority, meaning opposition from AfD and Die Linke could derail the plan unless it’s pushed through in the outgoing parliament.
Critics from both ends of the political spectrum have slammed the maneuver as undemocratic. AfD leaders vowed to challenge it, accusing Merz of betraying voters by taking on massive debt, while Die Linke condemned it as a blatant power grab. Despite opposition, Merz argues that strengthening Germany’s defense is vital, especially as the U.S. shifts its NATO stance under Donald Trump.
The CDU’s controversial strategy includes reforming Germany’s constitutionally enshrined “debt brake,” allowing military spending above 1% of GDP to bypass borrowing limits. The plan also earmarks an additional €500 billion for infrastructure over the next decade.
While the Greens have yet to fully endorse the proposal, they’ve hinted at a willingness to negotiate if climate protection measures receive adequate funding. Meanwhile, fiscal conservatives accuse Merz of abandoning his campaign promise to uphold financial restraint, painting his move as a desperate bid to appease the left and secure power.
With time running out, all eyes are on whether the CDU-SPD coalition can push this unprecedented spending package through before the political landscape shifts.
