German lawmakers have approved a substantial defense and infrastructure investment package proposed by Friedrich Merz, reflecting a major shift in Germany's fiscal policy. This package, seen as a fiscal 'bazooka', plans over one trillion euros in spending over the next decade to strengthen the country against rising geopolitical threats, particularly from Russia. The approval includes a 500-billion-euro fund for infrastructure, exemption from strict debt rules for defense spending, and additional support for Ukraine. This move is anticipated to enhance Germany's role in European security and bolster investor confidence.
The hastily drawn plans, which represent a radical departure for a country traditionally reluctant to take on large amounts of debt or to spend heavily on the military, are designed to strengthen Germany amid geopolitical turmoil.
Merz argued it was vital to bolster the country in light of Russia's 'war of aggression against Europe,' aiming for a significant increase in defense and infrastructure spending.
The spending package is expected not only to support Ukraine but also to transform Germany's approach to national security funding and infrastructure development.
Merz emphasized the necessity for Europe to adopt a more assertive role in its own security while maintaining essential relations with the United States.
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