CDU's Friedrich Merz secures billion-euro deal for Germany’s military and infrastructure

CDU leader Friedrich Merz has revealed plans for a new €500 billion special fund aimed at boosting infrastructure and defence spending.

Just over a week after his victory in the federal elections, Merz announced that his Christian Democratic Union (CDU), together with its Bavarian sister party (CSU) and likely coalition partner, the Social Democrats (SPD), will present a joint bill in parliament next week to ease the country's debt brake.

"I want to say that very clearly in view of the threats to our freedom and peace on our continent, our defence must now apply ‘Whatever it takes’," said Merz, speaking alongside SPD and CSU party leaders at a press conference in Berlin on Tuesday.

"The additional spending on defence can only be coped with if our economy returns to stable growth within a very short period of time . . . This requires rapid and sustainable investments in our infrastructure," he added.

The bills need a two-thirds majority in parliament to pass, meaning Merz must reconvene the outgoing Bundestag, elected in 2021, and gain the backing of the Greens.

It marks a significant shift from Germany’s historically conservative approach to public borrowing. In 2009, Berlin enshrined the debt brake in its constitution, which restricts government borrowing and sets the structural deficit at a maximum of 0.35% of GDP.

Although Merz did not indicate such a move during the election campaign, the CDU/CSU is now defending the decision in light of recent global political events, including the tense clash between US President Donald Trump and Ukrainian President Volodymyr Zelenskyy in Washington.

"Germany and Europe must quickly strengthen their defence capabilities. The CDU, CSU and SPD will table a motion to amend the Basic Law so