Berlin (Brussels Morning Newspaper) – The outgoing German lower house of parliament will hold a special session on March 13, 2025, to discuss a 500 billion euro fund for infrastructure and comprehensive modifications to borrowing regimes to strengthen defence.
The victor of Germany’s election last month, Friedrich Merz wants to get the funds before a new parliament summons on March 25, where they risk being stopped by an expanded contingent of far-right and far-left legislators.
According to experts, such a change in spending behavior in a country better understood for its frugality has tilted markets over the past week, allowing the euro to reach five-month highs against the dollar. The financial plan is not a finished deal though, with Merz’s conservatives and likely future coalition allies, the centre-left Social Democrats (SPD) requiring to win over the Greens to secure the two-thirds majority needed to change the constitution.
Analysts argue that Merz’s manoeuvre could also get shot down by the constitutional court, which could deliver its ruling on challenges filed by the far-right Alternative for Germany and far-left Left party.
Why is Merz rushing to secure funding before March 25?
Germany’s likely next chancellor says increasing defence has taken on a new importance due to the prospect of longtime security partner the United States clearing from Europe under the leadership of President Donald Trump.
Experts say the courage of Merz’s statements and the speed with which he has reached an agreement with the SPD on funding projects augur well for more decisive leadership from Germany going forward, despite his lack of background in government.
That will be critical, they state, for equipping Germany and Europe to contend with growing security challenges including a belligerent Russia and more assertive China as well as restoring an economy that has been in recession for two consecutive years.
On Thursday, the Bundestag lower house of parliament will hold the first reading of a conservative and SPD proposal as well as Green and Free Democratic proposals (FDP) for increasing defence funds. Second and third readings are scheduled next Tuesday, resulting in a vote.
