Germany considers easing debt brake for military spending

German lawmakers are set to vote on whether to relax the country’s strict borrowing rules to finance military spending.

The country faces increasing pressure to increase defense spending, and tensions are rising over Europe’s security and the future of US support under President Donald Trump.

Friedrich Merz, leader of the conservative CDU, which won the elections in Germany last month and is trying to form a coalition with outgoing Chancellor Olaf Scholz’s Social Democrats, has called for urgent action.

In a speech to parliament this week, Merz called on lawmakers to exempt some defense spending from the country’s strict “debt brake,” which limits new borrowing to just 0.35% of annual GDP.

“We must do something now to significantly increase our defense capabilities, and we must do it quickly and in great unity in foreign and security policy,” Merz told lawmakers.

The proposed plan includes a €500 billion fund, financed by borrowing, to invest in both defense and infrastructure over the next decade.

Economists estimate that if approved, the measure could pave the way for up to €1 trillion in new spending over the same period.

However, changes to the debt brake require a two-thirds majority in parliament, as stipulated in the constitution. Merz and Scholz’s parties have moved to pass the measure before the new parliament convenes on March 25.

Opposition parties, including the right-wing Alternative for Germany (AfD), argue that the debate should be postponed until the new parliament convenes to better reflect the will of the voters.

The AfD, which finished second in the elections, is expected to have more seats in the new parliament than in the current one.

AfD co-chair Alice Weidel accused Merz of reversing his position on the debt brake. “No other candidate for chancellor has broken so many elections promises in such a short time as you, Mr. Merz. You will go down in history as the gravedigger of the debt brake,” Weidel said.

Merz’s party, the CDU, had previously opposed changing the borrowing limit, but has since signaled its willingness to negotiate, citing the need for stronger defense spending amid growing uncertainty in Europe.

Green Party co-leader Katharina Droge also criticized Merz for previously rejecting proposals to reform the debt brake for economic and climate-related investments.

Despite the reactions, Merz argued that Germany must act quickly to strengthen its army and fulfill its NATO commitments.

“Germany must become capable of defending itself and return to the international stage as a capable partner in Europe, in NATO, and in the world,” Merz said.

The debate will continue in parliament on Tuesday, March 18, and the outcome will likely shape Germany’s fiscal and defense policies in the years to come.