Historic Deal on Defense Budget Reform Sends Shockwaves Through German Politics!

Historic Deal on Defense Budget Reform Sends Shockwaves Through German Politics!

A defense minister from the Social Democratic Party (SPD) has praised the agreement between the Union and the SPD in the exploratory talks on Tuesday evening for a reform of the defense and infrastructure budget ceiling. “This is a historic day for the German Bundeswehr and for Germany” the minister told the Spiegel.

According to the minister, the possible new government coalition has thus overcome a crucial hurdle. “We are sending a strong signal to the people in our country and to our alliance partners” Pistorius said. A corresponding decision by the Bundestag would enable Germany to take a leading role in strengthening NATO in Europe with other countries.

The minister had opposed a rigid special fund for the Bundeswehr in the talks and instead proposed a more flexible solution. After the agreement, he stated that the agreement not only strengthens the Bundeswehr but also makes urgently needed investments in the entire country possible. “We are strengthening the economy and ensuring that the states also get more room for their tasks” the minister said. This, he said, also takes into account the intergenerational fairness.

The Union and the SPD plan to change the budget ceiling in the Basic Law in the coming week. For this, they need a two-thirds majority, which would require the consent of the Free Democratic Party (FDP) or the Greens. In the election campaign, the Union and the FDP had still spoken out against a reform.

Defense expenditures from the federal budget, which exceed a amount corresponding to one percent of the gross domestic product, are to be exempt from the restrictions of the budget ceiling according to the plans of the Union and the FDP. For investments in infrastructure, a special fund of 500 billion euros is to be created for the next 10 years, of which 100 billion euros are to be allocated to the federal states. The Greens had already demanded this in the 2021 election campaign and the consent of their faction is therefore likely. The Union and the SPD plan to reform the budget ceiling further in the newly elected Bundestag – for this, they need the consent of the AfD or the Left in addition to the new majority relationships.