Germany's Merz Vows 'Whatever It Takes' for Defense and Infrastructure

Friedrich Merz, expected to lead Germany as its next Chancellor, has unveiled a transformative plan emphasizing substantial investments in defense and infrastructure to enhance the country’s security capabilities.

Friedrich Merz, poised to become Germany's next Chancellor, is making headlines with his commitment to prioritize national defense and infrastructure spending amid growing security concerns in Europe. During a press conference, he announced a political agreement focused on generating hundreds of billions of euros for these essential sectors, stating, "In view of the threats to our freedom and peace on our continent, the rule for our defense now has to be 'whatever it takes'."

Merz, whose party emerged victorious in last month's elections, aims to formalize new initiatives with prospective coalition partners from the center-left, putting forth proposals to the parliament as early as next week. He stressed the urgency for Germany to ramp up its spending, particularly in light of shifting geopolitical dynamics, including perceived inadequacies in support from the United States, directed at Ukraine.

The 69-year-old leader emphasized the need for Germany to reinforce its defense capabilities independently. He depicted his stance as critical following criticism of former President Donald Trump's interactions with Ukrainian President Volodymyr Zelensky. In collaboration with leaders from the Social Democrats and his conservative allies in Bavaria, Merz stated that while Germany relies on U.S. support, it recognizes the necessity of significantly boosting its own national defense and alliance commitments.

At the heart of Merz's vision is a proposal for a special €500 billion fund earmarked for modernizing Germany's aging infrastructure, paired with reforms to existing budget rules to facilitate increased defense expenditure. This marks a pivot from the strict fiscal measures known as the "debt brake," which currently restricts budget deficits. Proposed changes would exempt defense expenses exceeding 1% of GDP from these limitations.

Despite Germany's significant aid to Ukraine, its military remains critically underfunded. Previous attempts to establish a €100 billion defense fund after the 2022 Russian invasion have seen most of those resources allocated. To meet NATO's defense spending guideline of 2% of GDP, Germany needs to find an extra €30 billion annually, with experts arguing that an increase closer to 3% is optimal.

On the eve of an EU summit focused on Ukraine and collective European defense, outgoing Chancellor Olaf Scholz was expected to meet with Merz and leaders from the Social Democrats. Last year's coalition government unraveled over disagreements on debt reform, a challenge further complicated by the need for a two-thirds parliamentary majority to amend constitutional constraints.

While Merz's defense budget plans face uncertainty, outgoing Defense Minister Boris Pistorius characterized them as a crucial advancement. He and Social Democrat leader Lars Klingbeil have emphasized the necessity to directly tie security spending to the greater goal of national safety. The proposed €500 billion infrastructure fund would not only focus on military readiness but also on rejuvenating essential services like roads and rail, with additional financing aimed at assisting Germany's federal states through eased debt restrictions.