Germany’s conservative leader, Friedrich Merz, has secured a landmark financial package to boost defence and infrastructure, reinforcing Germany’s position in Europe ahead of a crucial parliamentary vote next Tuesday.The deal, forged after 10 hours of negotiations with the Greens, ensures increased defence funding and a €500bn infrastructure investment, signaling Germany’s renewed commitment to European stability. “Germany is back,” Merz declared, underscoring the nation’s role in safeguarding peace and freedom.Merz, expected to become chancellor, is racing to pass the reforms before the newly elected Bundestag convenes on 25 March. With the far-right AfD doubling its seats and opposing the measures, swift action is critical. The constitutional court has cleared the way for next week’s vote, where Merz needs a two-thirds majority—likely achievable with support from the Social Democrats and Greens.The agreement includes exempting defence spending from debt restrictions, allowing a €3bn aid package for Ukraine. It also permits Germany’s 16 states to borrow beyond current limits, addressing long-standing infrastructure and climate investment gaps.Merz’s victory highlights Germany’s shift toward proactive leadership, amid global uncertainties and concerns over U.S. commitment to Europe under President Trump. If passed, the reforms will mark a turning point, positioning Germany as a stronger force in European security and economic resilience.
