The prospective next German government’s plans to enable higher defense spending by loosening strict debt rules and to set up a huge infrastructure fund that’s aimed at boosting Europe’s biggest economy have cleared their final parliamentary hurdle wit…
BERLIN — The prospective next German government’s plans to enable higher defense spending by loosening strict debt rules and to set up a huge infrastructure fund that’s aimed at boosting Europe’s biggest economy cleared their final parliamentary hurdle Friday with approval by the upper house.
The chamber, which represents Germany’s 16 state governments, approved the measure proposed by likely next chancellor Friedrich Merz with the necessary two-thirds majority. Its endorsement followed approval on Tuesday by the lower house.
Conservative leader Merz, who won last month’s election, and his prospective center-left coalition partners say recent weeks have brought new urgency to efforts to further strengthen Germany’s long-neglected military, as doubts have grown about the United States’ commitment to the trans-Atlantic alliance.
The plans needed a two-thirds majority in both houses of parliament because they involve changes to Germany’s strict self-imposed borrowing rules — the so-called “debt brake,” which allows new borrowing worth only 0.35% of annual gross domestic product and is anchored in the constitution. That forced the would-be coalition partners into negotiati