Bundestag to vote on increased defence spending

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March 18, 2025
3 min read

Bundestag to vote on increased defence spending

Germany’s Parliament, the Bundestag, is set to vote on whether to increase defence spending. This could pave the way for an uplift in military investment as Russia makes gains in Ukraine and America scales back its support for Europe.

“This vote in the Bundestag is absolutely crucial,” says Prof Monika Schnitzer, chair of Germany’s Council of Economic Experts. “After the Munich Security Conference, then the Trump-Zelensky row, Europe got a wake-up call. For the first time Europeans may not be able to rely on Washington. A lot of people had sleepless nights after that.”

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Dr Fenella McGerty, senior fellow for defence economics at the London-based International Institute for Strategic Studies agrees, saying: “The outlook for European defence spending hinges on developments in Germany, as the holder of the region’s largest defence budget.”

Germany’s defence spending rose last year by 23.2%, helping to drive a record 11.7% increase in European defence outlay.

“The remarkable initiatives announced in Germany are key to enabling further growth,” Dr McGerty adds. “Without them, any progress made on strengthening Germany’s military capability may have stalled.”

Germany has been cautious about defence spending. This is both because of its history but also the global debt crisis of 2009. But this vote in the Bundestag is about more than just defence. Another part is about freeing up €500 billion (£420 billion) for infrastructure and cover climate change measure.

It also hopes to remove restrictions in the constitution regarding borrowing, freeing up more money for defence spending, both for Germany and a pan-European defence fund. Earlier this month, European Commission President Ursula Von der Leyen announced plans for the The ReArm Europe Fund, an €800 billion defence fund.

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