Germany’s Bundestag to vote on historic financial package

Lawmakers in the German parliament are about to vote on big changes to the country’s rules on borrowing.

Chancellor-in-waiting Friedrich Merz and his conservatives, along with their likely coalition partners, the center-left Social Democrats, will support the measures.

Because it’s a change to Germany’s Basic Law — the country’s constitution — the vote needs a two-thirds majority. As a result, they will need support from at least one other party in the Bundestag.

The Greens, part of Chancellor Olaf Scholz’s outgoing coalition, are set to lend their support.

Below, DW takes a look at what is at stake.

Shortly before the decisive vote in the old Bundestag, the party leaders of the center-right Christian Democrats (CDU), Social Democrats (SPD), and Greens expressed optimism that the necessary two-thirds majority would be achieved on Tuesday. 

Such an absolute majority is required for the planned amendment to Articles 109, 115 and 143 of the Basic Law.

CDU leader Friedrich Merz and SPD parliamentary group leader Lars Klingbeil — whose parties are in talks to form the next coalition government — spoke after party parliamentary group meetings that saw very few dissenters. 

They believe the majority of 31 votes is not considered at risk. 

In a test vote in the Green parliamentary group, there was one “no” vote, which had already been made public. Green co-leader Franziska Brantner said that no difficulties were looming.

In the new parliament, likely next chancellor Merz would not have an obvious way to garner enough votes to push the package through.

He is therefore using the strength of the SPD, conservatives and Greens in the outgoing parliament to push through the changes. 

One factor that might muddy the waters would be urgent motions from lawmakers from the business-focused Free Democrats and the far-right Alternative for Germany, which have already been submitted.

A key part of the vote is the relaxing of fiscal rules to ease Germany’s long-standing debt brake — which is part of Germany’s Basic Law, the country’s constitution.

It means that the federal government can borrow — but only within certain limits — up to 0.35% of gross domestic product (GDP), the annual economic output.

Under the proposals, the brake would be virtually nullified when it comes to spending needed for the country’s defense.

The changes mean that “federal expenditure on civil defense and civil protection, intelligence services, the protection of information technology systems, and aid to countries attacked in violation of international law,” may be financed via loans in the future. 

That includes military aid to Ukraine, which is set at €4 billion ($4.6 billion) for 2025.

Read more about the changes to the debt brake here.

Lawmakers in Germany will vote Tuesday on a spending boost for defense and infrastructure as part of a plan put forward by chancellor-in-waiting Friedrich Merz.

The boost is a radical departure for a country traditionally reluctant to take on large amounts of debt or to spend heavily on the military, given the horrors of its Nazi past. 

But Merz, 69, whose conservative CDU/CSU alliance won the most seats in February’s election, has called for swift action as concerns grow that the US’s decades-old commitment to European defense is faltering under President Donald Trump.

In an interview with public broadcaster ARD on Sunday, Merz said the “situation has worsened in recent weeks”, citing Trump’s overtures to Russia to end the Ukraine war and his wavering commitment to NATO.

“That is why we have to act fast,” Merz said.

Outgoing Foreign Minister Annalena Baerbock said the proposals were a “strong signal that Germany is serious about its own security, about the security of Ukraine and about the security of Europe.”

Germany’s Bundestag on Tuesday will decide on several amendments to the Basic Law that would allow future federal and state governments to take on greater levels of debt.

The proposal is to ease the “debt brake” for defense spending and for the federal states.

In addition, a fund of €500 billion ($545 billion) is to be created for additional investment in infrastructure and to achieve climate neutrality by 2045.

The CDU/CSU, SPD and Greens agreed in principle on the proposals last week.

A two-thirds majority is required for the planned amendment to Articles 109, 115 and 143 of the Basic Law.

The bloc of parties in favor of the reform will not have the two-thirds majority in the new parliament after the far-right AfD and the Left party made major gains in the February election. 

Therefore, the parliament is holding a final session for the vote before the newly elected lawmakers take their place in the Bundestag.

Thank you for joining us as we bring you the latest from the German Bundestag’s vote on a historic spending package.

This blog will not only bring you the latest news on the vote, but also analysis and multimedia content.  

The exceptional parliamentary session is set to begin at 0900 UTC, with the vote expected by 1200 UTC.