By using this site, you agree to the Privacy Policy and Terms of Use.
Accept
AmextaFinanceAmextaFinance
  • Home
  • News
  • Banking
  • Credit Cards
  • Loans
  • Mortgage
  • Investing
  • Markets
    • Stocks
    • Commodities
    • Crypto
    • Forex
  • Videos
  • More
    • Finance
    • Dept Management
    • Small Business
Notification Show More
Aa
AmextaFinanceAmextaFinance
Aa
  • Banking
  • Credit Cards
  • Loans
  • Dept Management
  • Mortgage
  • Markets
  • Investing
  • Small Business
  • Videos
  • Home
  • News
  • Banking
  • Credit Cards
  • Loans
  • Mortgage
  • Investing
  • Markets
    • Stocks
    • Commodities
    • Crypto
    • Forex
  • Videos
  • More
    • Finance
    • Dept Management
    • Small Business
Follow US
AmextaFinance > News > Merz ‘confident’ about Germany’s make-or-break spending vote
News

Merz ‘confident’ about Germany’s make-or-break spending vote

News Room
Last updated: 2025/03/18 at 4:05 AM
By News Room
Share
4 Min Read
SHARE

Stay informed with free updates

Simply sign up to the German politics myFT Digest — delivered directly to your inbox.

Germany’s incoming chancellor Friedrich Merz has expressed “confidence” about Tuesday’s make-or-break vote in parliament over his plans to unlock up to €1tn for the country’s armed forces and ageing infrastructure.

To pass the measures Merz, whose Christian Democrats won elections last month, has taken the highly unusual step of convening an emergency session of the outgoing Bundestag, where mainstream parties still hold a two-thirds supermajority.

His Christian Democratic Union, its CSU Bavarian sister party and likely coalition partners the Social Democrats (SPD) retain, together with the Greens, about 70 per cent of seats in the old parliament, which was elected in 2021.

The vote’s timing is vital because in the incoming Bundestag, the far-right Alternative for Germany and far-left Die Linke, which oppose loosening the country’s debt brake to fund defence spending, will hold a blocking minority over such reforms.

On the eve of the vote, Germany’s mainstream parties were still racing to rally absentees and convince dissenters among outgoing MPs.

But Merz on Monday declared he was “confident” his package would be adopted.

“I can fully understand that there are questions and that there are doubts,” he said. “I think we’ve convinced the critics. There are two or three [CDU MPs] who want to stick to their decision not to back [the bill] tomorrow.”

Merz’s spending reforms, which would end decades of fiscal orthodoxy, have been hailed by European allies, security experts and economists as a breakthrough that would accelerate the modernisation of Germany’s army and revive its economy, which has stagnated for the past five years.

The package will allow unlimited borrowing to better equip the Bundeswehr and supply weapons to Ukraine. MPs will also vote on the creation of a special €500bn, 12-year fund designed to modernise infrastructure ranging from power grids and hospitals to roads and rail networks.

The Greens, who initially threatened to block the plan, obtained concessions from Merz last week, including more investment in the green transition and a vow to use the package to meet climate neutrality by 2045. They have also secured pledges that additional defence spending will cover support for Ukraine, civil protection, information technology and intelligence agencies.

Matthias Miersch, SPD general secretary, also sounded confident the party’s 87 outgoing MPs would support the constitutional changes: “As things stand, all members of parliament will probably be present and we also expect that there will be a high approval rate,” he said on Monday.

Germany’s upper house of parliament, which represents the country’s 16 states, must also adopt the bill. With the CDU, SPD and Greens lacking a two-thirds majority in the Bundesrat, they will need Bavaria’s CSU prime minister Markus Söder to win over his state government’s coalition partners, the Free Voters.

Söder has insisted that Bavaria, Germany’s largest state, would “ultimately back” the financing plan when the Bundesrat convenes on Friday. On Monday, Merz said he had no doubt the CSU leader would deliver the missing votes.

“As far as Bavaria is concerned, the Bavarian prime minister said . . . very clearly that there will be an approval by Bavaria on Friday . . . I have no reason to doubt that.”

Read the full article here

News Room March 18, 2025 March 18, 2025
Share this Article
Facebook Twitter Copy Link Print
Leave a comment Leave a comment

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Finance Weekly Newsletter

Join now for the latest news, tips, and analysis about personal finance, credit cards, dept management, and many more from our experts.
Join Now
Pentagon invests $1bn in US missile motor unit of defence group L3 Harris

Unlock the White House Watch newsletter for freeYour guide to what Trump’s…

Understanding Iran: seven books that help explain the unrest

Unlock the Editor’s Digest for freeRoula Khalaf, Editor of the FT, selects…

Who Will Be The Next JPMorgan Chase CEO?

Watch full video on YouTube

Why hopes of a December Fed rate cut are declining

Watch full video on YouTube

Former Federal Reserve chiefs attack Department of Justice probe into Jay Powell

Unlock the White House Watch newsletter for freeYour guide to what Trump’s…

- Advertisement -
Ad imageAd image

You Might Also Like

News

Pentagon invests $1bn in US missile motor unit of defence group L3 Harris

By News Room
News

Understanding Iran: seven books that help explain the unrest

By News Room
News

Former Federal Reserve chiefs attack Department of Justice probe into Jay Powell

By News Room
News

Franklin Municipal Green Bond SMA Q3 2025 Commentary

By News Room
News

Templeton Global ADR Equity SMA Q3 2025 Commentary

By News Room
News

Energy Transfer: My Top 6 Reasons To Invest In The Partnership (NYSE:ET)

By News Room
News

Iranian protesters defy crackdown as crowds chant anti-regime slogans

By News Room
News

The Perfect Storm Behind Silver’s Rise

By News Room
Facebook Twitter Pinterest Youtube Instagram
Company
  • Privacy Policy
  • Terms & Conditions
  • Press Release
  • Contact
  • Advertisement
More Info
  • Newsletter
  • Market Data
  • Credit Cards
  • Videos

Sign Up For Free

Subscribe to our newsletter and don't miss out on our programs, webinars and trainings.

I have read and agree to the terms & conditions
Join Community

2023 © Indepta.com. All Rights Reserved.

YOUR EMAIL HAS BEEN CONFIRMED.
THANK YOU!

Welcome Back!

Sign in to your account

Lost your password?