Germany is back, says Friedrich Mertz after a historic defense and expense deal


Paul Kirby

Digital editor of Europe

Reuters Friedrich Mertz stands in front of a microphone wearing a suit and tie to talk to reportersReuters

The deal is a personal victory for Friedrich Mertz, the German Chancellor

The conservative leader of Germany, Friedrich Mertz, won a huge financial package for the renovation of defense and infrastructure before voting in parliament next Tuesday.

Mertz, who aims to lead a government with the Social Democrats in the coming weeks, is in a hurry to push a big impetus to the costs of defense and creaking infrastructure.

After winning the election last month, he said it was his absolute priority to strengthen Europe because President Donald Trump seemed indifferent to his fate.

After 10 hours of conversation with the Greens, he said the deal sent a clear message to the allies of his country: “Germany is returning.”

He added: “Germany makes its main contribution to the protection of freedom and peace in Europe.”

Mertz, who is expected to become the next chancellor in Germany, bid to receive his duty and spend reforms through the departure parliament before the newly elected MPs manage to take their seats in the Bundestag on March 25.

The ultimate right alternative to the German Party (AFD) doubled the number of MPs in the election and could threaten the impetus of Merz's expenses if he could not pass on time. The left party also objects to the reforms.

According to the German Constitution, Merz needs a majority of two -thirds to pass the changes. With the support of Greens and Social Democrats, he must succeed.

Emergency requests from both AFD and the Left to challenge the sessions next week of the departing parliament, failed at the Constitutional Court on Friday, allowing the vote to move on.

The conservative leader of the Christian Democrat said the Tripartite Plan agreed from his party, the Social Democrats and the Greens:

  • Large impetus to defense, civil protection and intelligence costs – with costs over 1% of GDP (economic production) exempt from debt limitations
  • Special Infrastructure Fund of EUR 500 billion (£ 420 billion) for additional investments in 10 years, including EUR 100 billion to cover climate protection initiatives
  • Germany's 16 states will be allowed to borrow up to 0.35% of GDP over debt limit.

Defense plans also allow the costs of assistance to countries “attacked in violation of international law” to be released from the so -called debt brake.

This would allow the output chancellor Olaf Scholz to launch 3 billion euros to help Ukraine next week.

The last government of Germany collapsed at the end of 2024 due to disagreements on the laxatives of debt, submitted by the government of Chancellor Angela Merkel during the 2009 financial crisis.

This meant that the government could not occupy more than 0.35% of Germany's gross economic production, while the country's rail and bridge infrastructure has been creaking for years of shortcomings and ministers tried to increase military spending.

Social Democrats chairman Lars Klingbale said the agreement on Friday sent a “historical signal” to Germany, which will make the country a stronger and “will strengthen the role of Germany in Europe.”

Although the Greens were in the old government, they would not be part of the Merz coalition. However, the party is glad that 100 billion euros, backed for climate financing, will go “in the right direction”.

The Green Analence Foreign Minister of Foreign Affairs also welcomed the defense package that it not only makes Germany more fascinated, but sends a “clear signal to Ukraine, Europe and the world”.

Germany took responsibility in turbulent times, she added.

AFD's contemporary Alice Wedel was less impressed and accused Merz of bending the constitution and a load of future generations with a “giant weight”.

“It's nothing less than a financial coup,” she complained.



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