The CDU\/CSU, which emerged as the leading party in Germany’s early federal elections, and the SPD, the leader of the current government, have paved the way for the rearmament of the German Armed Forces (Bundeswehr). They have taken a step towards military leadership in Europe through a \u20ac500 billion debt program.<\/p>\n
The debt package will not only finance armament but also enable the repair of dilapidated infrastructure, such as militarily important transportation routes in eastern Germany.<\/p>\n
Additionally, defense spending exceeding 1% of economic output will be exempt from the debt brake in the future. This means that all kinds of expenditures can be made for the Federal Army.<\/p>\n
Compared to the initially planned \u20ac400 billion additional debt program (“special assets”), this measure has the advantage of enabling unlimited debt for armament, far exceeding the \u20ac400 billion.<\/p>\n
Thirdly, the parties also want to specifically relax the strict debt rules for Germany’s states. SPD Co-Chairman Lars Klingbeil said negotiators had “definitely” agreed on a fundamental reform of the debt brake to give the states more breathing room after the new legislative period officially begins.<\/p>\n
Friedrich Merz, the leader of the Christian Democrats and expected to be the next chancellor, said at a press conference in Berlin that the parties agreed that decisions to strengthen Germany’s and Europe’s defense infrastructure “can no longer be postponed after the recent decisions of the American government.”<\/p>\n
Merz stated, “Additional spending on defense can only be met if our economy returns to a stable growth path as soon as possible. For this, we need a radical improvement in competitive conditions as well as rapid and sustainable investment in our infrastructure.”<\/p>\n
For the Christian Democrats, who campaigned on a promise to maintain the debt brake, this proposal represents a complete departure from the party’s previous stance on deficit spending.<\/p>\n
However, the passage of the new debt measures is far from certain. The parties need a two-thirds majority in parliament to approve changes to the debt brake. The results of last month’s elections mean that the AfD and Die Linke will prevent the centrist parties from having enough votes to carry out constitutional reforms in the next parliament. Therefore, instead of waiting, the parties have decided to pass the reforms through the current Federal Assembly, where they will have the necessary majority by the end of the month.<\/p>\n
Merz said the center-right bloc and the SPD would call an extraordinary meeting of the Federal Assembly next week to present the motions.<\/p>\n
But this is a risky strategy, as the Federal Constitutional Court could overturn the law on the grounds that the parties have both ignored the will of the people and presented the next Federal Assembly with a fait accompli.<\/p>\n
The centrist parties will also have to persuade other parties, such as the Greens and the liberal Free Democrats (FDP), in the current parliament to reach a two-thirds majority to amend the constitution.<\/p>\n
In parallel, Merz said coalition talks would continue on Thursday and Friday, with the aim of concluding the talks “in a timely manner.”<\/p>\n
Merz also said the parties would meet with the acting Chancellor to discuss the immediate disbursement of an additional \u20ac3 billion in military support to Ukraine from the current budget, which Chancellor Olaf Scholz had previously blocked due to funding concerns.<\/p>\n
Markus S\u00f6der, Merz’s ally, prime minister of Bavaria, and chairman of the Bavarian Christian Democrats (CSU), said, “We are as anxious and concerned as a large part of our people, because everything that is happening these days is completely overturning the old certainties. Today, we are not only showing that a new government can act before the distribution of posts has even been decided. We are sending a signal to friend and foe: Germany is here, Germany is not retreating.”<\/p>\n
Germany’s move goes hand in hand with the creation of a new EU rearmament program, which, according to European Commission President Ursula von der Leyen, will mobilize up to \u20ac800 billion for the procurement of war equipment in the EU.<\/p>\n
A document on rearmament states that Berlin should launch a project called “SPARTA,” which aims to “accelerate the immediate launch of major Europe-wide armament programs, focusing on new technologies and sovereign intra-European supplies.”<\/p>\n
A background document, originally written to justify the \u20ac400 billion debt program, shows what the funds could be used for.<\/p>\n
According to the document, signed by Moritz Schularick, President of the Kiel Institute for the World Economy (IfW), Thomas Enders, former CEO of Airbus and President of the German Council on Foreign Relations (DGAP), Ren\u00e9 Obermann, former CEO of Deutsche Telekom and Chairman of the Supervisory Board of Airbus, and venture capitalist Jeanette zu F\u00fcrstenberg, it is important to establish “asymmetric superiority” on the modern battlefield.<\/p>\n
For example, it is necessary to create “a comprehensive drone wall over the eastern flank of NATO,” which would require tens of thousands of drones. Underwater surveillance in the Baltic region also needed to be strengthened.<\/p>\n
According to the authors, Germany should launch an inclusive “SPARTA” project (Strategic Projection and Advanced Resilience Technology Alliance) to encourage “the immediate launch of major Europe-wide armament programs, focusing on new technologies and sovereign intra-European supplies.”<\/p>\n
The signatories of the document oppose the continued purchase of US defense equipment, such as the F-35 fighter jet, as this results in “constant dependence.”<\/p>\n
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