Germany, Bundestag approves fiscal ‘bazooka’ for defense investments

18 Marzo 2025

(Adnkronos) – German lawmakers have approved a defense and infrastructure investment package, proposed by Chancellor-designate Friedrich Merz, to strengthen the country in a context of geopolitical upheaval. Bundestag deputies voted by a margin of 513 to 207 in favor of the so-called “bazooka” tax of hundreds of billions of euros, which required a loosening of the brake on debt enshrined in the German constitution. 

In addition to the CDU/CSU Union and the SPD socialists, likely partners in the next government, the Greens, who are not expected to be part of it, also voted in favor. This unusual vote was deemed necessary in the eyes of the Bundestag because the motion would not have had the necessary support after the next German Parliament was seated. 

The passage marks a clear change of pace on the part of Berlin on the control of its public debt in the face of the urgent need to strengthen its armed forces, essential also in view of a wider push for rearmament within the EU and the consequent loosening of Community rules on state aid to allow Member States to increase investments in the military sector. 

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