# ‘Germany is back’: Merz secures Greens’ support for defence spend boost

Backing of Greens is tantamount to approval of chancellor-in-waiting’s proposal to relax debt brake

**Kate Connolly in Berlin**

Fri 14 Mar 2025 11.29 EDT

First published on Fri 14 Mar 2025 11.23 EDT



Germany’s conservative chancellor-in-waiting, , has said he has secured the support of the Green party for his radical plan to increase spending on defence and infrastructure after marathon talks that went through the night, paving the way for its approval in parliament.

“Germany is back,” Merz said in Berlin on Friday. “Germany is making its large contribution to the defence of freedom and peace in Europe.”

The conservative CDU/CSU bloc, which won last month’s election, and the Social Democrats, who are in talks to form a new government, put forward a deal that will relax Germany’s strict debt brake, allowing an increase in defence spending and a €500bn (£420bn) “special fund” dedicated to infrastructure reforms.

Merz, who is on the verge of becoming Germany’s new leader, wants to seal the funding deal before parliament convenes in less than two weeks. The backing of the Green party, which would give Merz the necessary two-thirds majority for a constitutional change, is tantamount to him getting the deal through.

An expanded group of far-right and far-left MPs in the new Bundestag could oppose the spending plan as a “blocking minority”, something Merz is keen to avoid.

The Greens, part of the existing government but due to go into opposition, have been furious at the extent of the conservative bloc’s criticism of the party, blaming the Greens’ climate policies for Germany’s economic woes and ridiculing the party repeatedly in public.

Markets reacted positively to the news on Friday, with the euro, German government bond yields and equities all rising on the back of reports that the much-anticipated deal had been reached.

Analysts said it sent a signal that Germany was capable of decisiveness and raising its commitment to defence at a time of global uncertainty.



Europe’s biggest economy has suffered two consecutive years of negative growth. Economists say the funding plans could help to pull it out of the economic doldrums.





The SPD leader, Lars Klingbeil, one of the first to react to the news, called the package “a powerful boost for Germany”. He said it “laid the foundation for Germany to get back on its feet and protect itself”.

Merz called the package “a clear message to our partners … but also to the enemies of our freedom: we are capable of defending ourselves”.










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