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Germany’s parliament has approved a significant increase in spending, marking a departure from its long-standing fiscal conservatism in an effort to stimulate economic growth and enhance military capabilities amid evolving geopolitical challenges. The decision, made during a session on Tuesday, is aimed at bolstering Europe’s collective defense strategy in the wake of persistent threats from Russia and changes in U.S. foreign policy under President Donald Trump, which have raised concerns among European leaders about regional security.
This parliamentary approval provides Friedrich Merz, the leader of the conservative party, a substantial opportunity to implement a financial boost, securing hundreds of billions of euros to support investments aimed at revitalizing Germany’s economy, which has faced two years of contraction.
The conservative party, alongside the Social Democrats (SPD), is actively negotiating the formation of a centrist coalition following recent electoral outcomes. Their agenda includes the establishment of a fund amounting to 500 billion euros (approximately $546 billion) focused on infrastructure development and a reassessment of constitutional borrowing limits to facilitate increased spending on national security initiatives.
Prior to the vote, Merz expressed to lawmakers, “For at least a decade, we have felt a false sense of security.” He emphasized that enhacing defense readiness is a critical step towards establishing a robust European defense community in light of current global dynamics.
The legislative proposal now awaits review by the Bundesrat, the upper house of Germany’s parliament, which represents the 16 federal states. A significant obstacle to the legislation’s passage appeared to have been resolved this week when the Bavarian Free Voters signaled their support for the initiative. Both the conservatives and SPD have expressed urgency in pushing this legislation through the outgoing parliament, motivated by concerns over potential opposition from an anticipated influx of far-right and far-left representatives in the next Bundestag session starting March 25. Merz has characterized the swift action on this issue as essential, given the rapidly shifting geopolitical landscape.
Source
globalnews.ca