Germany's leading political factions, including the Christian Democratic Union (CDU), Christian Social Union (CSU), and the Social Democratic Party (SPD), plan to introduce a constitutional amendment next week to allow for a significant increase in defense spending beyond the restrictions imposed by the country's debt brake, CDU/CSU leader Friedrich Merz announced on Tuesday.

Merz added that recent decisions by the US government have left no room for delay, reflecting the urgency of enhancing Germany's military capabilities amid the ongoing war in Ukraine and evolving security challenges in Europe.

"Following recent decisions by the US government, there is no longer any room for delay. Therefore, we, the parliamentary factions of the CDU/CSU and the SPD, will submit a proposal to Germany's Bundestag next week to amend the constitution, to ensure that necessary defense spending from the federal budget of the Federal Republic of Germany, exceeding 1% of our GDP, be exempt from the restrictions of the debt brake," Merz stated during a press conference alongside CSU leader Markus Söder and SPD representatives.

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Alongside the proposed military funding increase, Merz also announced the creation of a €500 billion ($530 billion) infrastructure investment plan that will be rolled out over the next decade. The initiative aims to modernize Germany's infrastructure and stimulate economic growth, particularly as the country navigates post-election political shifts.

Overturning Germany's fiscal restraints

The debt brake, a constitutional provision that limits Germany's ability to take on new debt, has long been a point of contention in budget negotiations. The proposed amendment would make an exception for military spending, allowing Germany to allocate a larger portion of its GDP to defense without violating its fiscal rules.

This legislative push follows Germany's snap elections on February 23, where the CDU/CSU bloc secured 28.6% of the vote, positioning Merz as a frontrunner to become the next German chancellor. The right-wing Alternative for Germany (AfD) made historic gains, earning 20.8% of the vote, while the SPD suffered its worst electoral performance ever with 16.4%.

Other notable election results include:

• The Greens: 11.6%
• The Left Party: 8.8%
• The Sahra Wagenknecht Alliance and Free Democratic Party (FDP) failed to reach the 5% threshold required to enter parliament.

If approved, the constitutional amendment would mark a significant departure from Germany's traditionally cautious fiscal and military policies.

The move reflects growing concerns in Berlin and across Europe over the future of NATO commitments and the continent's military self-sufficiency in light of shifting US foreign policy priorities.

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