BERLIN (AP) 鈥� Germany鈥檚 would-be next chancellor, , won lawmakers鈥� approval Tuesday for ambitious plans to loosen the nation鈥檚 strict debt rules for higher defense spending as doubts mount about the strength of the trans-Atlantic alliance, and to set up an enormous fund for investment in its creaking infrastructure.
Merz passed a major test as the outgoing parliament voted 513-207 in its final meeting to approve .
The decision helps smooth the way for a governing coalition of Merz鈥檚 center-right Union bloc and the center-left Social Democrats of outgoing Chancellor Olaf Scholz after he won . But he still faces plenty of work to seal a deal in ongoing talks.
Easing off the brake
The plans needed a two-thirds majority of at least 489 votes in parliament鈥檚 lower house, the Bundestag, because they involve changes to Germany鈥檚 strict self-imposed borrowing rules 鈥� the so-called 鈥渄ebt brake,鈥� which allows new borrowing worth only 0.35% of annual gross domestic product and is anchored in the constitution. That forced the prospective coalition partners with the environmentalist Greens to get enough votes.
The package will exempt from the debt rules spending on defense and security, including intelligence agencies and assistance to Ukraine, worth more than 1% of GDP. It also foresees a 500 billion-euro ($544 billion) fund, financed by borrowing, to pour funding into Germany鈥檚 and help 鈥� Europe鈥檚 biggest 鈥� to growth.
At the Greens鈥� insistence, 100 billion euros from the investment fund will go into climate-related spending.
鈥榃hatever it takes鈥�
The plans amounted to an about-turn for Merz, whose party had spoken out against running up new debt before the election without entirely closing the door to future changes to the 鈥渄ebt brake.鈥� The Social Democrats and Greens had argued for a reform of the borrowing rules 鈥� arguing that Germany, whose debt load is relatively low, has room to borrow more.
Recent weeks have brought new urgency to efforts to further strengthen Germany鈥檚 . The outgoing government created a special 100 billion-euro fund to modernize it, which also helped Berlin meet the current NATO target of spending 2% of GDP on defense. But that pot will be used up in 2027, and doubts have grown recently about the Trump administration鈥檚 commitment to .
Merz said that Germany and Europe must quickly strengthen their defense capability and that 鈥溾�榳hatever it takes鈥� must also go for our defense now.鈥�
On Tuesday, he pointed to the danger from Russian President Vladimir 鈥淧utin鈥檚 war of aggression against Europe 鈥� it is a war against Europe and not just a war against Ukraine鈥檚 territorial integrity.鈥� He pointed to suspected Russian sabotage and disinformation in Europe.
Merz said the prospective German government鈥檚 move should be 鈥渢he first step toward a new European defense community,鈥� which could include countries outside the European Union such as Britain and Norway.
The Social Democrats鈥� co-leader, Lars Klingbeil, said that 鈥淓urope stands today next to an aggressive Russia on one side and an unpredictable United States of America on the other side.鈥� He said he favors doing everything to maintain 鈥渋ndispensable鈥� trans-Atlantic cooperation, but 鈥渨e must now do our homework in Europe 鈥� we must become stronger, we must take care of our own security.鈥�
Merz acknowledged that many are struggling to digest the wider spending plans but argued that 鈥渢hey open prospects for our country that, in the times we are living in, are urgently needed.鈥�
One more hurdle
The package was brought to the old parliament 鈥� not the newly elected one, which will hold its first session March 25, in which parties that were unlikely to agree have just over one-third of the seats. The far-right, anti-immigration portrays itself as a staunch defender of the 鈥渄ebt brake,鈥� while the Left Party opposes it but is skeptical about military spending.
鈥淎 politician鈥檚 greatest asset is credibility and with this embarrassing action, dear Mr. Merz, you have already squandered yours completely,鈥� Alternative for Germany co-leader Tino Chrupalla said. 鈥淰oters feel cheated by you, and rightly.鈥�
Ahead of Tuesday鈥檚 vote, Germany鈥檚 highest court rejected several bids to block the meeting of the outgoing parliament.
The package faces another hurdle Friday in parliament鈥檚 upper house, which represents Germany鈥檚 16 state governments. They are also set to be given more freedom to borrow money.
A two-thirds majority will also be needed in the upper house. That initially was uncertain because the parties behind the plans control only 41 of the 69 upper-house votes. But on Monday, the conservative-led governing coalition in Bavaria, which has six votes, also agreed to support the package.
Geir Moulson, The Associated Press
