Germany's Bold Budget Leap: 'Whatever It Takes' for Defense and Growth

Friedrich Merz, poised to become Germany's next chancellor, urges lawmakers to approve significant investments in defense and infrastructure, financed by increased borrowing. A two-thirds parliamentary majority is required to reform strict borrowing limits, with extensive deliberations among coalition partners. The plan includes a 500 billion-euro fund with climate investments.

Germany's potential future chancellor, Friedrich Merz, is seeking parliamentary approval for substantial defense and infrastructure investments, amid uncertainties about trans-Atlantic alliances. He calls for changes to the country's borrowing rules to accommodate the ambitious plan.

The outgoing Bundestag will vote on the proposal as Merz's center-right Union seeks a coalition with the center-left Social Democrats post-election. The package requires a two-thirds majority due to its implications on Germany’s constitutional debt limitations.

The initiative involves creating a 500 billion-euro fund for infrastructure, boosting military spending, and reallocating funds towards climate initiatives, presenting a significant shift for Merz's traditionally debt-averse party.

(With inputs from agencies.)