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.

Manfred Weber, a Bavarian Christian Democrat (CSU) politician and head of the European People’s Party (EPP), the largest group in the European Parliament (AP), made notable statements to Die Welt, advocating for a shift in Europe’s mindset towards a war economy.

Weber, seen as the architect of the EPP’s partial collaboration with groups to its right, argued that the new European Commission bears the stamp of the EPP’s political program. “Take a look at the new legislative proposals a hundred days after the European Commission took office; they all bear the stamp of the EPP. For example, a determined policy on deportations, support for agriculture, defense, and the reduction of bureaucracy. We are bringing Europe to life for its citizens,” he said.

Weber emphasized the importance of whether the Greens and Social Democrats, previously allies of the EPP, would remain in a “leftist bubble.” He expressed confidence that these parties, along with the Christian Democrats, would strengthen the “center,” thereby weakening radical parties.

Regarding the “firewall” policy against the “far right,” Weber stated, “The firewall means a joint fight against the enemies of democratic values, the enemies of Europe and the free world. But the firewall does not mean a right of veto for leftist programs.”

When asked, “What will you do if these [right-wing] parties support the Commission’s proposals while the Greens and Social Democrats oppose them?”—referring to his openness to cooperation with right-wing parties like Italian Prime Minister Giorgia Meloni’s party, while closing doors to groups further to the right such as the European Patriots for Europe (PfE) and European Nations Alliance (ESN)—he responded:

“Do you remember? In the last legislative term, the left-wing group in parliament, together with [Hungarian Prime Minister Viktor] Orbán’s party Fidesz and other radical forces, voted against the controversial nature restoration law, and together with the AfD against trade agreements or a migration agreement. There were frequent joint votes.”

Weber emphasized that they would not seek support from or work with the “radical right and left” in the AP for projects aimed at a “Citizens’ Europe,” but would accept it if these forces came with “unspoken” agreements.

The German politician stated that he was not surprised by the new Trump administration’s rhetoric that Europe should now ensure its own security, arguing that Trump’s statement that 330 million Americans cannot defend 450 million Europeans forever is “understandable.”

“Our problem is that we are not prepared for this,” Weber said, noting that he has frequently advocated for a “European defense” in recent years and that many years have been wasted by doing nothing in Berlin and Paris.

Weber added, “Apparently, a second Trump is needed to wake up Europe. I am pleased that the European Commission is now submitting proposals for a rearmament drive worth 800 billion euros.”

The EPP leader, underlining that Europe must defend itself independently, noted that he was “tired” of always looking to Washington for the EU’s security.

Believing in efficiency and prioritizing European companies, Weber also stated that they need a joint missile and drone defense shield and an independent European satellite surveillance system.

The EPP leader noted the need for a center of excellence for the development of artificial intelligence-focused innovations and a joint European military command integrated into NATO structures. “In this case, a European defense chief of staff should also be able to command the renewed national armies and give clear instructions on procurement. By the way, this issue was already agreed upon with France by Adenauer in 1952, but unfortunately, it was never implemented,” he said.

In one of the most important parts of the interview, Weber said, “Considering the threats, we must now shift our thinking in Europe to a war economy.”

The German politician noted that this means accelerating approval procedures for armaments, more cooperation among European defense manufacturers, and that in the future, defense manufacturers will “work in weekend shifts” and “companies that previously produced industrial goods for civilian purposes will start producing weapons.”

“We have to be creative; time is of the essence,” Weber said.

A politician from the CDU, expected to lead Germany’s next government, has for the first time spoken in favor of putting the Nord Stream 2 natural gas pipeline back into operation.

CDU Member of Parliament Thomas Bareiß stated on LinkedIn that if “peace” is achieved between Russia and Ukraine, “sooner or later” the “embargoes” will also be lifted, and in that case, gas flow could resume.

Bareiß, who served as Parliamentary State Secretary in the Ministry of Economic Affairs until 2021, made this statement in response to reports in the US and British media that US businessmen are planning to take over the company operating Nord Stream 2.

Such a takeover is expected to further increase the US influence over the EU’s natural gas supply. US liquefied natural gas (LNG) already accounts for approximately half of the EU’s total LNG imports in 2023.

However, the import share of Russian LNG is also increasing again. A robust Nord Stream 2 pipeline could transport approximately 27.5 billion cubic meters of natural gas per year, which corresponds to about one-third of Germany’s imports.

Initial reports regarding US activities related to Nord Stream 2 emerged last November. At that time, The Washington Post reported that US businessman Stephen Lynch applied to the US regulatory agency, the Office of Foreign Assets Control (OFAC), on February 28, 2024, to take over the Swiss-registered and sanctioned company operating the pipeline.

It was thought that this would be in the interest of the US, as the natural gas pipeline would thus become US property, and therefore be under US political control.

Lynch is also believed to have very good connections in Moscow, as he was involved in the efforts to transfer the foreign companies of Mikhail Khodorkovsky’s now-defunct Yukos Group to Rosneft’s ownership in 2007.

He also succeeded in taking over the sanctioned Swiss branch of the Russian Sberbank in 2022.

Lynch now states that he has experience in the “Russification” of sanctioned companies and wants to use this to take over Nord Stream 2.

Although this plan was considered “hopeless” under former US President Joe Biden, this may change with President Donald Trump’s announcement that he wants to end the war in Ukraine.

The Financial Times also addressed the issue in early March. Meanwhile, the bankruptcy proceedings against the company operating Nord Stream 2, which were opened in Switzerland and were scheduled to end on January 9, 2025, have been postponed until May 9 of this year at the request of the company’s owner, Gazprom.

Gazprom stated that a change of government in the US and early elections in the German Federal Assembly could have “significant consequences” for the external situation of the natural gas pipeline.

In the meantime, there is at least one other party interested in Nord Stream 2; a US-led consortium is much further ahead in its preparations than Lynch and is apparently also engaged in concrete negotiations.

According to The Financial Times, some leading members of the Trump administration have been informed about the processes; these individuals see the processes as part of Washington’s efforts to re-establish some political relations with Moscow.

In addition, any agreement on Nord Stream 2 could be part of a comprehensive agreement to end the war in Ukraine.

Finally, The Financial Times points out that the takeover of the natural gas pipeline by a US-led consortium would give the US additional influence over Europe’s natural gas supply.

Of course, Nord Stream 2 can only be put back into operation with the express consent of the German government. So far, no such approval has been given.

A government spokesman, referring to the FT report, stated that Nord Stream 2 was “not certified” in 2021 due to the escalating dispute over the pipeline and therefore “can never be used.”

In addition, the European Commission rejected the idea of re-operating the undamaged parts of the Nord Stream 2 pipeline. A Commission spokesman in Brussels said that the pipeline would not be in the EU’s interest because it would not “diversify” the EU’s energy supply and would “re-establish dependence on an unreliable partner, Russia.”

It is also unclear whether Germany is currently involved in the negotiations. The Washington Post referred to the Berlin Global Advisors agency, which also included the former German ambassador to Moscow, Rüdiger von Fritsch. The agency did not confirm this.

The former managing director of Nord Stream 2, Mathias Warnig, also explicitly denied The Financial Times’ statements that he was involved in discussions regarding the commissioning of the natural gas pipeline.

Meanwhile, CDU Member of Parliament Thomas Bareiß is the first politician from a future German government coalition to speak out publicly in favor of Nord Stream 2 becoming operational.

Bareiß said on LinkedIn, “When peace is restored and the weapons are laid down between Russia and Ukraine (and hopefully this will happen soon), relations will normalize. Sooner or later, the embargoes will fall, and of course, gas can flow again.”

The CDU Member of Parliament explained, referring to the plans of a US-led consortium and Stephen Lynch, that this would “perhaps be in a US-controlled pipeline this time.”

Bareiß added that since “Europe will continue to be dependent on gas imports in the future” and pipeline gas is “much cheaper and at the same time more environmentally/climate-friendly than LNG gas,” natural gas imported via Nord Stream 2 would “certainly quickly find buyers in Europe.”

Bareiß is currently one of the CDU’s coalition negotiators with the SPD in the working group on transport and infrastructure.