The German chancellor-in-waiting, Friedrich Merz, has won a vote in parliament to allow a huge increase in state borrowing that is set to super-charge the country’s military spending.

Germany’s parliament made history Tuesday as it voted to sharply increase defense spending – by exempting it from limits on the country’s assumption of debt. Germany’s upper house, the Bundesrat, is widely expected to approve this change with a vote scheduled for Friday.

Friedrich Merz needed the support of two-thirds majority in parliament for his plan to unlock billions for defence and infrastructure spending. View on euronews

Germany's parliament voted Tuesday in favor of incoming chancellor Friedrich Merz's massive debt reform, which will free up hundreds of billions of euros for Europe's defenses amid Russia's ongoing war in Ukraine.

The multibillion-euro package loosens borrowing limits and allows new investments in defense, infrastructure and climate. The plan was backed by the conservative CDU/CSU alliance, center-left SPD and Greens.

An incoming government wants to borrow much more to revamp the economy and rebuild the military. That means a change in the country’s Constitution — and its culture.