Germany Approves Historic Constitutional Amendment to Boost Defense Spending

Germany’s federal parliament and state governments have ratified a landmark constitutional amendment to exempt defense spending from strict borrowing limits, marking a seismic shift in the nation’s military posture and fiscal policy.

The move, finalized on March 21, enables unprecedented investments in defense and infrastructure amid heightened geopolitical tensions.

Constitutional Changes: The amendment relaxes Germany’s debt brake rule, allowing defense spending exceeding 1% of GDP to bypass borrowing restrictions.

Previously capped at 0.35% of GDP, the exemption applies to military expenditures, intelligence services, cybersecurity, and aid to countries attacked in violation of international law.

Funding Allocation: A €500 billion ($542 billion) special fund will be established, with €100 billion ($108 billion) allocated to federal states for infrastructure and another €100 billion for climate protection.

Political Consensus: The Bundestag (lower house) approved the measure on March 18 with a two-thirds majority (513–207 votes), followed by Bundesrat (upper house) approval on March 21 (53–16 votes).

The decision reflects Germany’s response to Russia’s invasion of Ukraine and concerns over U.S. disengagement under former President Donald Trump.

Incoming Chancellor Friedrich Merz framed it as a first major step toward a new European defense community, emphasizing urgency amid deteriorating security conditions.

EU Commission President Ursula von der Leyen hailed the vote as excellent news, calling it a “clear message” of Germany’s commitment to defense.

Critics, including the far-left Die Linke and far-right AfD, opposed the measure, citing fiscal risks and militarization
The constitutional changes will take effect immediately, enabling a €3 billion ($3.28 billion) aid package to Ukraine and long-term military modernization.

Analysts note this marks Germany’s most significant defense policy shift since the Cold War, signaling a reorientation toward collective European security