The Parliament of Germany approved on Tuesday (18) the plans for a massive increase in spending, discarding decades of tax conservatism in the expectation of boosting economic growth and increasing defense spending to a new era of European collective security.
Approval provides a major momentum to the leader of the German conservative bloc, Friedrich Merz, providing the probable next chancellor an unexpected gain of hundreds of billions of euros to increase investments after two years of contraction in Europe’s largest economy.
Germany and other European countries have been pressured to strengthen their defenses in the hostility of Russia and changes in the United States under President Donald Trump, that European leaders fear they could leave the continent exposed.
Conservatives of the Social Democratic Party (SPD), which are in negotiations to form a coalition after last month’s election, want to create a 500 billion euros fund for infrastructure and make constitutionally consecrated tax rules flexible to enable greater security spending.
“For at least a decade we have a false sense of security,” Merz told parliamentarians before the vote.
“The decision we are making today about the readiness of defense can be nothing less than the first big step towards a new European defense community,” he said.
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The legislation still needs to be submitted to the High Chamber of Parliament, which represents the governments of the 16 federal states of Germany.
Conservatives and SPD want to pass the legislation in the current parliament, as they fear that it can be blocked by a larger contingent of far-right parliamentarians and far left in the next parliament, which takes office on March 25.
Merz has used the rapid change in the geopolitical situation as a justification for the tight schedule.
