Germany’s second chamber of parliament, the , on Friday, voted in favor of a massive spending package that is set to into defense, infrastructure and climate protection.
Earlier this week, a historic amendment to the constitution that will allow unprecedented levels of government spending.
Last major hurdle for debt reform
Approval from , which represents Germany’s 16 federal states, was necessary for the reform to pass into law.
At least two-thirds of members voted for the amendment for it to pass.
The yes vote was not a sure thing, as smaller parties in state coalition governments voiced objections.
In Bavaria, there were concerns the “Free Voters,” a junior coalition partner with the conservative Christian Social Union (CSU), would block the state’s vote. In the end, Bavaria voted yes as a bloc.
The amendment was backed in the Bundesrat with 53 out of 69 votes in favor, passing the the 46-vote threshold.
Brandenburg, Saxony-Anhalt, Thuringia, and Rhineland-Palatinate abstained, with abstentions counted as opposition votes.
Germany ready to spend big
The Bundesrat vote paves the way for massive spending from Europe’s largest economy.
The debt reform plan exempts defense spending from so-called “debt brake,” a that limits government borrowing.
Expenditures on defense, cybersecurity, intelligence and civil protection exceeding 1% of German GDP can now be financed with new debt.
The plan also earmarks a special €500 billion special infrastructure investment fund.
The proposal to loosen the debt brake was pitched by the and , who are trying to move quickly to push the reform through the outgoing parliament.
There were fears the plan could have been blocked in the new parliament after far-left and far-right lawmakers, who oppose the plan in principle, in the February election.
On Tuesday, the plan , the Bundestag, after were promised €100 billion ($109 billion) in climate investment would be included.
Why does Germany want to reform debt rules?
For CDU leader, and Germany’s next chancellor, Friedrich Merz, getting the debt brake reform passed before taking office amounts to a big win. The CDU is in coalition talks with the SPD, and hopes to get a coalition government on its feet by the end of April.
After the CDU came out on top in last month’s general election, Merz went on television and warned that the administration of US President Donald Trump , and that Germany must act quickly to bolster its defense capabilities.
under Trump, who has embraced Russian narratives on the war in Ukraine, while calling into question Washington’s commitment to European security.
“My absolute priority will be to strengthen Europe as quickly as possible so that, step by step, we can really achieve independence from the USA,” Merz said.
Bavaria’s conservative premier Markus Söder told the Bundesrat on Friday that “we must do everything we can to ensure that Germany once again becomes one of the strongest armies in Europe and can protect itself.”
Söder, who heads the Christian Social Union (CSU), the CDU’s Bavarian sister party, added Germany’s armed forces need new weapons systems, drones and air defenses.
“The threat from the east, from Moscow, is still present, while the support from the West is no longer what we were once accustomed to,” he said.
“I am a convinced transatlanticist, but the relationship of trust in the United States of America has, at least for me and for many others, been deeply shaken. The Germans are worried,” Söder added.
Edited by: Louis Oelofse
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