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Germany's decision to up military defense destabilizes Euro: AfD chief

  • By Al Mayadeen English
  • Source: News websites
  • 20 Mar 2025 17:18
  • 1 Shares
3 Min Read

The Bundestag's approval of the constitutional reform will allow Germany to take on more debt for defense spending, something German chancellor front-runner Merz pushed for.

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  • Alternative for Germany, AFD, party co-leader Alice Weidel speaks during a meeting of the German federal parliament, Bundestag, at the Reichstag building in Berlin, Germany, Thursday, March 13, 2025 (AP)
    Alternative for Germany, AFD, party co-leader Alice Weidel speaks during a meeting of the German federal parliament, Bundestag, at the Reichstag building in Berlin, Germany, Thursday, March 13, 2025 (AP)

Germany's decision to reform the constitution to allow for more defense spending risks destabilizing the Euro area, the co-leader of the Alternative for Germany (AfD), Alice Weidel, maintained.

"This is a death blow for the euro, which in the coming years – and it is already beginning to do so – will devalue significantly,” Weidel said, following the Bundestag's approval for the federal government to authorize an unprecedented level of state borrowing for defense and infrastructure, with the fiscal package receiving approval from 513 legislators while 207 opposed it. 

Weidel said German lawmakers have approved "gigantic debt", emphasizing that the constitutional reform will hit Germany's future generations the hardest, warning that “what is being done here is the final destruction of Germany’s financial stability.”

The co-leader of the AfD warned that the decision could cost Germany its top-tier AAA credit rating, referring to the country's highest long-term sovereign debt rating assigned by major credit agencies, which indicates the lowest level of risk.

The reform package introduced by the Bundestag will loosen the "debt brake" on defense spending, allowing Berlin to increase its military spending to above 1% of the GDP.

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German 'debt brake'

Germany officially approved an amendment to its constitution on March 20, making an exception to the country's strict debt brake rule for military spending, allowing Germany to allocate a larger portion of its GDP to defense without violating its fiscal constraints, marking a significant departure from its traditionally cautious fiscal and military policies.

This legislative milestone follows Germany's snap elections on February 23, in which the CDU/CSU bloc secured 28.6% of the vote, positioning Friedrich Merz as a frontrunner to become the next German chancellor. The right-wing Alternative for Germany (AfD) made historic gains, earning 20.8%, 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.

The approval of the amendment underscores Germany's growing concerns over European security amid shifting US foreign policy priorities and NATO's evolving role. With this decision, Berlin signals a stronger commitment to military self-sufficiency and a greater role in European defense.

The approval followed a push by the German Chancellor front-runner Friedrich Merz to strengthen Germany's military, in a bid to reduce its reliance on Washington and boost its reputation and influence in the region.

"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 on March 4.

  • AFD
  • Germany
  • Alice Weidel
  • defense spending

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