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.