Germany plans constitutional reform for increased defense spending, infrastructure investment

Germany's prospective government, led by Friedrich Merz of the Christian Democratic Union (CDU), plans to amend constitutional laws to increase defense spending amid concerns over the U.S.'s commitment to NATO and European security. The coalition with the Social Democrats aims to exempt defense expenditures exceeding 1% of GDP from the existing 'debt brake' that currently limits borrowing to 0.35% of GDP. The proposed changes come as Germany seeks to bolster its military capabilities and invest in infrastructure to address economic challenges, following two years of recession. These reforms are seen as urgent, especially in light of recent tensions between the U.S. and Ukraine, which have raised doubts about American support for European allies. Lawmakers emphasize that immediate action is necessary to support Ukraine against Russian aggression and reinforce Germany's defense posture. The proposed financial strategy includes a 500 billion euro fund to enhance infrastructure over the next decade.