Germany’s Chancellor-in-waiting vows significant investment to secure the nation’s future.
Friedrich Merz, poised to become Germany’s next Chancellor, has unveiled plans to drastically increase the country’s defence and infrastructure funding. In a statement made following his election victory, Merz declared that in light of growing threats to European peace and freedom, Germany must adopt a “whatever it takes” approach to defence spending.
Merz, 69, outlined his intention to form a government by late April and proposed a substantial financial overhaul, involving hundreds of billions of euros in additional spending. This would include a €500bn special fund dedicated to repairing the nation’s ageing infrastructure. Merz is also aiming to reform the stringent debt regulations that currently limit government borrowing.
The newly elected leader stressed that Germany must act swiftly, pointing to “recent decisions by the American government” and underscoring Europe’s need for greater independence. He also reiterated the importance of Germany maintaining its commitments to NATO and its allies while significantly increasing its defence budget.
The proposal suggests lifting restrictions on defence spending that surpass 1% of Germany’s GDP, allowing for unlimited defence investment. This move is part of a broader push to meet NATO’s 2% defence spending target, with experts forecasting that Germany will need to increase this figure to 3% to remain competitive.
Germany’s armed forces, traditionally underfunded, will receive substantial investment, building on the €100bn fund established after Russia’s 2022 invasion of Ukraine. Despite this, experts argue that Germany needs an additional €30bn annually to meet the NATO goal.
While the new government coalition is still in its formative stages, Merz’s proposals have sparked considerable debate, with some cautioning against overhauling constitutional debt rules. The debate is expected to continue at a meeting between Merz, outgoing Chancellor Olaf Scholz, and other European leaders ahead of an EU summit on defence and Ukraine.
