Germany passes historic defense hike after years of pressure from Trump

• Germany’s parliament passed a landmark defense spending increase, driven by Chancellor-in-waiting Friedrich Merz. The legislation aims to reshape Europe’s security landscape and alleviate concerns about U.S. reliability as a security partner.
• Merz championed the bill as essential for national and European security, citing recent geopolitical shifts, including Trump’s wavering commitment to NATO and outreach to Russia regarding Ukraine.
• The spending package includes a 500 billion euro fund for infrastructure and military investments, exempting defense spending above 1% of Germany’s GDP from constitutional debt limits.

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Germany’s parliament on Tuesday, March 18, passed a major increase in defense spending, a decision that could reshape Europe’s security landscape. The move follows years of pressure from the United States, particularly under President Donald Trump, who repeatedly criticized NATO allies for not meeting defense spending targets.

The legislation seeks to ease Germany’s strict borrowing limits, allowing more funds for military expansion and European security efforts.

What does the legislation include?

The spending package includes a 500 billion euro ($545 billion) fund for infrastructure and military investments. A key part of the bill exempts defense spending above 1% of Germany’s GDP from its constitutional debt limits. It also allocates an additional 3 billion euros ($3.3 billion) to support Ukraine in 2025.

Chancellor-in-waiting Friedrich Merz, whose conservative CDU/CSU alliance won Germany’s recent election, championed the bill as essential for national and European security.

“We have to act fast,” Merz said, citing recent geopolitical shifts, including Trump’s wavering commitment to NATO and outreach to Russia regarding Ukraine.

How does the package fit into Europe’s security concerns?

European leaders have grown increasingly concerned about U.S. reliability as a security partner, particularly after Trump’s past comments suggesting NATO allies should not assume American protection. At the recent Munich Security Conference, U.S. officials reinforced those concerns, with Vice President JD Vance and Defense Secretary Pete Hegseth signaling that Europe should take greater responsibility for its own defense.

Germany has already taken steps to bolster its military. In 2024, it spent $75 billion on defense, reaching NATO’s target of 2% of GDP. However, military experts emphasized the need for more investment, not only in traditional weaponry, but also in advanced technologies, such as artificial intelligence and unmanned drones.

How did the legislation pass?

The vote required a two-thirds majority in the Bundestag, and still needs approval from Germany’s upper house. The bill had backing from both the CDU/CSU and the Social Democrats (SPD).

Opposition parties, including the far-right AfD and the far-left Die Linke, resisted the measure, but the bill still passed 513-207.

The current parliament offered a greater chance of success than the incoming Bundestag — set to convene on March 25 — which will have a stronger opposition presence.

For proponents, the bill’s success is seen as crucial not only for Germany but for the European Union’s broader defense plans. European Commission President Ursula von der Leyen recently announced an 800 billion euro “ReArm Europe” fund, which may struggle without the financial support of Germany.

What would have happened if the bill was rejected?

While Merz says a two-thirds majority has also been secured in Germany’s upper house, there is still a chance that the bill might fail.

If the package is rejected in the upper house, Germany’s defense budget could remain constrained by its constitutional debt brake, limiting its ability to modernize its military or contribute to broader European security initiatives. This would complicate efforts to counter a resurgent Russia, which has significantly ramped up military production.

The debate also extends beyond budgets. Analysts warn that Europe needs more than just financial commitments — it requires leadership capable of navigating a rapidly changing security environment.

Merz remains confident that the bill will pass in the Bundesrat, or Germany’s upper house of parliament, arguing that the country must adapt to the evolving geopolitical landscape.

“The decision we are taking today on defense readiness… can be nothing less than the first major step towards a new European defense community,” he told lawmakers before the vote in the Bundestag on Tuesday.