Germany’s Green Party has opposed future Chancellor Friedrich Merz’s intentions for a debt-financed package that would raise defense and infrastructure spending, threatening the fate of the plan. Merz’s plan would ease constitutional borrowing limits to enable a €500 billion infrastructure fund over the next decade and significantly enhance defense spending. To change these borrowing ceilings, a two-thirds parliamentary majority is required, and that will necessitate the Green Party’s vote.
Green Party co-chair Franziska Brantner condemned the proposal, singling out Christian Democratic Union (CDU) and Social Democratic Party (SPD) members for exploiting the current security atmosphere to further their agendas. She declared the Greens are “not available to finance the CDU and SPD’s election promises with debt.” The Greens have also protested that they were not consulted beforehand and demanded that climate protection policies be included in any proposals for debt reform. In spite of the Greens’ public protest, both CDU and SPD officials are hopeful that an agreement will be reached. They view the Greens’ opposition as a negotiating tactic to win concessions. SPD co-leader Lars Klingbeil reaffirmed his determination to find a solution to the challenges facing the country and to rally support from the democratic center.
The urgency of raising this funding is also fueled by European security interests, especially in light of President Donald Trump’s reelection and shifting U.S. foreign policy. Merz has underlined the importance of Europe becoming more independent in its defense capabilities. The European Union has also proposed easing budget rules to allow for substantial defense spending, with Commission President Ursula von der Leyen requesting the release of €800 billion for defense.
A further complication came when the hard-right Alternative for Germany (AfD) has initiated legal proceedings to block the attempt to summon the outgoing parliament to vote on the spending package. This step will further complicate Merz’s efforts to obtain the needed majority for his bill.
As negotiations are prolonged, the destiny is not certain. The Greens’ call to include climate projects and to resist unchecked borrowing underlines the complexities Merz must manage in pursuing his defense and infrastructure agenda.
