Germany’s Green Party Refuses New Chancellor’s Proposal for 500 Billion Euro Defense Budget.

March 11, 2025 TruthUSA

The Green Party stated that they would support easing the debt break only if there was genuine backing for climate policies.

Germany’s Greens have pledged to oppose Chancellor-designate Friedrich Merz’s proposed 500 billion euro ($545 billion) rise in state borrowing for defense and infrastructure.

The potential governing parties in Germany—the Christian Democratic Union (CDU) led by election winner Merz and the Social Democratic Party (SPD)—aim to relax fiscal restrictions to establish a significant infrastructure and defense fund.

The CDU and SPD have agreed to exempt defense expenditure exceeding 1 percent of GDP from Germany’s stringent constitutional borrowing limit, known as the debt brake. It restricts the federal government’s structural net borrowing to 0.35 percent of gross domestic product, adjusted for the economic cycle.

Merz requires the support of the Greens to pass the constitutional modifications in parliament. The environmentalist left-wing party has vowed to block the half-trillion-euro spending proposal.

“We will not allow ourselves to be manipulated, nor will we permit Friedrich Merz and Lars Klingbeil to exploit a challenging European security situation,” stated Greens co-leader Franziska Brantner on March 10. “This serves neither the country nor our interests in Europe.”

Co-leader Katharina Droege mentioned that the Greens would encourage their legislators not to endorse Merz’s plans, only supporting actions that include climate policy and economic assistance.

The center-right Christian Democratic Union (CDU) emerged victorious in Germany’s federal election last month.

In Germany, there is rarely a legislative majority, prompting parties to attempt governing through a minority government, relying on impromptu parliamentary coalitions.

Coalition talks might collapse, leading Merz to potentially form a weaker minority government with more left-wing partners like the Greens, who secured over 11 percent of the vote.

Alternative for Germany (AfD) endorsed by Elon Musk on social media platform X, came in second with 20.8 percent of the vote, its best outcome.

Merz has dismissed the idea of partnering with the party, despite the stability it would ensure through a firm majority.

On Monday, AfD filed an urgent legal motion with the Constitutional Court challenging plans to convene the outgoing parliament to deliberate the spending package.

The appeals, lodged by several opposition AfD lawmakers, aim to prevent Thursday’s parliamentary session, where the Bundestag is set to debate constitutional amendments enabling the substantial expenditure plan.

On Feb. 24, AfD leader Alice Weidel predicted that the next chancellor would face pressure from left-wing parties to increase borrowing.

“[Merz] won’t be able to deliver on his promises,” she remarked. “He will compromise with the left to relax the debt brake, contrary to the country’s needs. … The state should operate like a company, and when a company is heavily indebted, you know what occurs.”

The democratic socialist party Die Linke, or The Left, which secured 8.8 percent of the vote, opposes military spending but aims to eliminate the debt brake if the funds are directed towards welfare instead of defense.

Approximately 60 percent of Germans support maintaining the debt brake.

Merz has been urged to loosen it to boost spending, although such a reform would necessitate two-thirds approval in Parliament.

The initiative to establish an infrastructure fund and revamp borrowing rules marks a significant departure from Merkel-era fiscal prudence.

These measures could elevate Germany’s debt level to around 3.6 trillion euros ($3.9 trillion) or approximately 72 percent of gross domestic product by 2029, as stated by Scope analyst Eiko Sievert earlier this month.

This would surpass the 63 percent ratio at the end of 2024 but still fall below the previous peak of 80 percent in 2010 following the global financial crisis.

Reuters and Guy Birchall contributed to this report.

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