German Parliament Passes $1 Trillion Defense Plan

Germany's parliament has approved a historic debt-funded package to boost defense and infrastructure spending, marking a significant policy shift from its traditional fiscal conservatism. Incoming chancellor Friedrich Merz, with support from the Social Democrats and Greens, secured a supermajority in the Bundestag, allowing constitutional amendments to bypass the 'debt brake'. This trillion-euro initiative aims to enhance Germany's military capabilities amid rising threats from Russia and to foster a new European defense community. The package includes a $546 billion infrastructure fund and exempts defense spending from strict borrowing limits. The legislation now awaits approval from the Bundesrat, and its passage is expected to have wide-ranging economic and security implications for Europe. The move has been met with both support and criticism, reflecting diverging views on fiscal responsibility and European security collaboration.