The lower house of the German parliament has approved a bill by a majority vote that allows Germany to increase its national debt to finance large-scale investments in the military and infrastructure. 513 lawmakers voted in favor, while 207 voted against.
This historic step affects key aspects of Europe’s defense strategy. Specifically, the new measures include the ability to exclude military spending from the limits on state borrowing and the creation of a special infrastructure fund worth over 500 billion euros.
To secure the necessary majority, the conservative CDU/CSU party and the Social Democrats last-minute agreed to the demands of the Green Party, which allowed them to achieve the desired result. The bill will now be sent to the Bundesrat, the upper house of parliament, where a vote is expected on Friday.
The new amendments are expected to impact European defense as a whole.
In 2024, Germany’s defense spending rose by 23.2%, contributing to a record increase in defense expenditure across Europe.
