German upper house approves huge defense spending bill that lifts 'debt brake'
March 21 (UPI) -- Germany's upper house, the Bundesrat, voted to approve a massive defense and infrastructure spending bill.
The 53-16 vote represents a historic shift for German defense, eliminating a debt restriction in order to defend against Russian aggression in Europe.
"We are laying the foundation for targeted investments in freedom and progress. We are taking responsibility for Germany," Soon-to-be Chancellor Frederich Merz said Friday,
Merz wanted to make sure the defense spending reform approved before the newly elected members of Parliament are seated, because it may have been blocked by the far-right AfD party and the left-wing Die Link party.
It removes the "debt brake" that for decades capped German defense spending at 1% of GDP. The bill significantly increases defense spending while providing more than $500 billion for infrastructure.
The spending bill allows greater borrowing for Germany's federal government and its states and includes more than $3 billion in new military aid for Ukraine.
It comes as the European Union attempts to boost defense investment by $840 billion.
Former German finance minister Christian Lindner opposes the Merz plan, and asserted Germany could have "a trillion euros in higher debt, without having been economically strengthened by it."
The Bundestag voted March 18 to pass the historic spending measure.
"This is a historic fiscal regime shift, arguably the largest since German reunification," said Robin Winkler, chief German economist at Deutsche Bank Research.
The Bundestag is directly elected by the German people nationally while the Bundesrat represents German states.
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