THE prospective German government’s plans to enable higher military spending by loosening strict debt rules cleared their final parliamentary hurdle today with approval by the upper house.
The chamber, which represents Germany’s 16 state governments, approved the measure proposed by likely next chancellor Friedrich Merz with the necessary two-thirds majority.
Its endorsement followed approval on Tuesday by the lower house.
Mr Merz, whose right-wing Christian Democrat Union coalition came first in last month’s election, and his prospective Social Democrat coalition partners say the decision was necessary as doubts grow over the US commitment to the transatlantic alliance.
The plans needed a two-thirds majority in both houses of parliament because they involve changes to Germany’s strict self-imposed borrowing rules — the so-called “debt brake,” which allows new borrowing worth only 0.35 per cent of annual gross domestic product and is anchored in the constitution.
The package exempts from the debt rules spending on defence and security, including intelligence agencies and assistance to Ukraine, of more than 1 per cent of GDP.
It also foresees setting up a €500 billion (£420bn) fund, financed by borrowing, to pour money into Germany’s creaking infrastructure over the next 12 years and help restore the stagnant economy to growth.