The prospective partners in Germany’s next government have said they will seek to loosen rules on running up debt to allow for higher defence spending.
Centre-right election winner Friedrich Merz, who is trying to put together a coalition government with the centre-left Social Democrats, said the two sides would propose exempting spending of more than 1% of gross domestic product on defence from rules that limit the government’s ability to borrow money.
They said they will also seek to set up a huge €500bn ($533bn) fund to finance spending on Germany’s infrastructure over the next 10 years.
“In view of the increasing threat situation, it is clear to us that Europe – and with Europe, the Federal Republic of Germany – must now very quickly make very big efforts very quickly to strengthen the defence capability of our country and the European continent,” Merz told reporters at a hastily convened news conference.
Merz also said he wanted to get immediate approval for a three-billion-euro aid package for Ukraine that has been held up for weeks.
He vowed to do “whatever it takes“ when it comes to defence “in light of threats to our freedom and peace on our continent”.
Merz’s promise of “whatever it takes“ recalled the pledge made in 2012 by the then president of the European Central Bank (ECB) Mario Draghi during the sovereign debt crisis.
Photo: Centre-right election winner Friedrich Merz.
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