Germany's next chancellor, Friedrich Merz, is asking lawmakers to allow the country to spend “all necessary resources” on defence as doubts grow over the strength of the transatlantic alliance.
The outgoing parliament is due to meet for the last time to vote on the plans, as Mr Merz's centre-right Union bloc works to form a governing coalition with outgoing Chancellor Olaf Scholz's centre-left Social Democrats after winning last month's election.
– A two-thirds majority is required.
The plans would require a two-thirds majority in the lower house of parliament, the Bundestag, because they would involve changes to Germany's strict rules on borrowing on its own – the so-called “debt brake” that allows new borrowing of just 0.35% of annual gross domestic product and is enshrined in the constitution.
This has forced potential coalition partners to enter into negotiations with environmentalists from the Green Party, whose votes will be needed to gain sufficient support.
The package provides for exemption from debt repayment rules for defense and security spending, including intelligence services and aid to Ukraine, in the amount of more than 1% of GDP.
The plan also calls for a €500bn (£421bn) debt-financed fund to finance Germany's infrastructure over the next 12 years and help restore the economy – Europe's largest – to growth.
At the insistence of the Greens, 100 billion euros from the investment fund will go towards climate-related spending.
– “Whatever it takes”
The plans amount to a policy reversal for Merz, whose party had opposed increasing new debt before the election, without completely closing the door to future changes to the “debt brake.”
The Social Democrats and the Greens have long advocated reform of the borrowing rules.
Recent weeks have given particular urgency to efforts to further strengthen Germany's long-neglected armed forces.
The outgoing government created a special €100 billion fund for modernization, which also helped Berlin meet NATO's current defense spending target of 2% of GDP.
But that reserve will run out in 2027, and doubts have grown in recent days about the Trump administration's commitment to European allies.
Earlier this month, Mr Merz said Germany and Europe must quickly strengthen their defence capabilities and that “whatever it takes” must be done for our defence now.
He told ARD television on Sunday that “the situation has sharply worsened again in recent weeks” and that Germany's budget was in worse shape than previously thought.
Of Tuesday's vote, he said: “It will be difficult, but it will work.”
“Of course, there is still convincing work to be done in all three parliamentary groups, but we must not miss this opportunity,” he said.
– Another obstacle
The package is being introduced in the old parliament, not the newly elected one, which will hold its first session on March 25, because the parties unlikely to reach agreement hold just over a third of the seats in the new chamber.
The far-right Alternative for Germany (AfD) has positioned itself as a staunch defender of the “debt brake,” while the Left Party opposes it but is skeptical of military spending.
In the outgoing Bundestag, the Union, the Social Democrats and the Greens together have 520 of the 733 deputies – 31 more than required for a two-thirds majority.
If the package is approved on Tuesday, it will face another hurdle on Friday in the upper house of parliament, which represents the governments of Germany's 16 states.
They will also be given greater freedom to borrow money.
A two-thirds majority would also be required in the upper house.
Initially, it was uncertain because the parties behind the plans control only 41 of the 69 votes in the upper house.
However, on Monday, Bavaria's conservative-led ruling coalition, with six votes, also agreed to back the package.
Sourse: breakingnews.ie
