Special funds for defence: Legislative change in the fast lane?

The CDU/CSU and SPD are proposing to create a special fund of 500 billion euros for infrastructure and defence by reforming the country's "debt brake" provision. In order to benefit from the majority of the old Bundestag, things will now move quickly.

 Special funds for defence: Legislative change in the fast lane?

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Shortly after the elections and during the transitional period of forming a new government, Germany is forced to clarify its own position on defence.

The likely next chancellor, Friedrich Merz, proposed a reform of the debt brake this week in order to create 500 billion euros in special funds for infrastructure and defence.

 Special funds for defence: Legislative change in the fast lane?

"In view of the threats to our freedom and peace on our continent, whatever it takes must now also apply to our defence," said Merz.

In addition to exploratory talks, agreements on the defence budget must now also be reached in the Bundestag.

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Since the confrontation between US President Donald Trump and his Ukrainian counterpart Volodymyr Zelensky in the Oval Office last week, defence has become a more urgent priority than ever in Germany, Europe and worldwide.

Donald Trump temporarily put military aid for Ukraine against the Russian war of aggression on hold and announced that he would soon initiate negotiations with Russia.

 Special funds for defence: Legislative change in the fast lane?

EU-Ratspräsident Antonio Costa, der ukrainische Präsident Wolodymyr Selenskyj und EU-Kommissionspräsidentin Ursula von der Leyen beim EU-Gipfel in Brüssel, 6.3.2025Harry Nakos/Copyright 2025 The AP. All rights reserved.

German defence budget for the EU

The SPD and the CDU/CSU had already agreed in advance of Thursday's special EU summit in Brussels to increase defence spending. A special fund of 100 billion euros is planned for the Bundeswehr. It is intended to provide a range of new equipment, including air defence, cyber defence and various weapons, ammunition and drones.

In an interview with ARD-Hauptstadtstudio, Johann Wadephul, deputy leader of the CDU/CSU parliamentary group, held out the prospect of three billion euros from Germany to support Ukraine within the EU.

For the current Federal Chancellor Olaf Scholz, it is important that defence remains a national responsibility and that defence spending is financed from the budgets of the member states. Before the start of the talks, he said that it was important to ensure that Ukraine did not have to accept a dictated peace and that the country must remain an independent and democratic nation.

Amendment to the law to be agreed with the old Bundestag

In order to create the special fund of several hundred billion with a reform of the debt brake, several amendments to the German Basic Law are necessary. A fundamental reform of the "debt brake" provisions makes it possible to fundamentally determine investments in infrastructure and is therefore a long-term solution.

A special fund alone would only provide temporary financial resources. The CDU plans to exempt defence spending above one percent of GDP from the debt brake.

The SPD, CDU/CSU and Greens still have a two-thirds majority in the current Bundestag. They need this to amend the constitution - including the debt brake. In the new Bundestag, however, the AfD and the Left Party would have a blocking minority.

Politically, the - presumably - new federal government therefore wants to make use of old majorities. The law is therefore expected to be passed through parliament by the middle to end of March.

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