On March 18, 2025, the Bundestag voted on a controversial financial package proposed by the Union and SPD, aimed at amending the constitution’s debt brake to significantly increase government spending on defense, infrastructure, and climate protection. The decision arose against the backdrop of mounting international tensions, particularly due to the aggressive stance of the Putin regime and the unpredictability of the US administration under President Joe Biden. While some party members viewed the financial package as necessary to bolster Germany's defense capabilities, others expressed concerns about the scale of the debt increase and its long-term impacts on fiscal stability.
The financial package includes several key measures. Firstly, it proposes exemptions from the debt brake for defense spending, allowing potentially unlimited new loans for the Bundeswehr, civil protection, cyber defense, and support for Ukraine. Secondly, it creates a new debt fund of up to 500 billion euros, dedicated to infrastructure projects and climate protection investments, which the Greens successfully negotiated to include. These funds will not be mingled with other spending categories like tax cuts for commuters or agricultural subsidies. Thirdly, it allows individual federal states the opportunity to incur new debts, departing from traditional restrictions.
Today’s gathering of the old Bundestag is notable, as it enabled Union and SPD to secure the two-thirds majority necessary to alter the Basic Law, evading the constraints posed by the forthcoming new Bundestag, which is set to convene next week. SPD and Union historically hold significant power but need to garner support from the Greens to push through these amendments. The urgency of convening the current parliament lies not only with the immediate legislative goals but also with impending international crises, which the Union and SPD claim necessitate immediate action.
Friedrich Merz, the head of the Union parliamentary group, anticipates support from the faction but has acknowledged the possibility of dissent within both the CDU and CSU. Certain members express discomfort with the shockingly high amount of debt being discussed, arguing this lack of prior discourse during the election campaign is problematic. A few dissenters are expected to stand firm against supporting the financial package. Fewer concerns seem to emanate from the SPD and Greens, though potential tensions linger among departing representatives who might withhold their backing to prevent facilitating Merz’s path to chancellorship.
A positive outcome from the Bundestag would not conclude the saga, as the Bundesrat’s approval would still be necessary for the package to become law. The Bundesrat’s composition complicates matters; Union, SPD, and Greens alone hold insufficient numbers, requiring additional support, likely spearheaded by potential allies from Bavaria, where the Free Voters have shifted their initial resistance and now signal compliance.
Compounding the legislative dynamics are the political undercurrents during this session. Critics from the AfD, BSW, and Left Party challenge both the legitimacy of the old Bundestag’s decisions and the proposal itself. Some have decried it as undemocratic, arguing it enables unprecedented military funding at the expense of other pressing social needs. They assert the coalition's maneuvering reflects a lack of faith in the electoral process, especially as many embarking on the proposed changes will soon leave office.
“The constitutional amendments are historic; we’re faced with extraordinary times,” stated Lars Klingbeil, the SPD parliamentary leader. He insisted on the importance of seizing this moment to bolster Europe's security framework and fulfill Germany's leadership role on the continent. Klingbeil emphasized the intertwining of investments for military capabilities with necessary infrastructure improvements, voicing optimism for capturing Green support amid tensions.
CDU/CSU leaders also highlight the severe need for enhanced military readiness, asserting it must be materially underpinned. “Delaying any action would be irresponsible,” Merz stated, framing the financial package as more than just increased expenditures. His assurance of “solid fiscal management” aims to quell critics concerned about excessive spending.
Among the Greens, there exists skepticism about the proposal being bundled together. They argue it undermines trust and does not enforce the intended climate objectives adequately. Despite this, the Green leadership has shown signs of engagement, advocating for investment to advance climate neutrality by 2045 and seeking clarity on the government’s commitment to additional funding leverage.
While the FDP stands opposed to the financial package, their concerns center on the potential removal of the debt brake and the alleged breach of promises by Union lawmakers. CDU's Friedrich Merz has faced accusations of abandoning commitments made during the election campaign, with the FDP asserting the package heralds leftist economic policies detrimental to Germany's fiscal health.
Looking back, many of today’s parliamentary debates echo sentiments shared during tumultuous historical events underpinning the significance of democracy within Germany. March 18 holds historical prominence; most recognize it as the date of the first free legislative vote following German reunification.
Bundestagspräsidentin Bärbel Bas solemnly commemorated this legacy, asserting, “A moment like this challenges us to continue fostering democratic values.” Whether the financial package passes hinges on collaboration and managing dissent, but the outcome may reshape the fiscal policy fabric of Germany for years to come.
