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German parliament votes for massive increase in defense funding despite debt fears

AILSA CHANG, HOST:

In Germany, lawmakers have approved changes to the constitution to allow for unprecedented spending on defense. As Esme Nicholson reports, the historic vote brings an end to decades of austerity, and it is meant as a message for Washington and Moscow to take Berlin seriously.

(SOUNDBITE OF ARCHIVED RECORDING)

UNIDENTIFIED PERSON: (Speaking German).

ESME NICHOLSON, BYLINE: After five hours of tense debate in the Bundestag, Chancellor-in-waiting Friedrich Merz got the supermajority needed to change the constitution to lift strict limits on deficit spending. Merz, whose conservative party has always been a staunch advocate of fiscal prudence, argued that extraordinary times called for unlimited defense spending and a whopping $540 billion infrastructure investment package.

(SOUNDBITE OF ARCHIVED RECORDING)

FRIEDRICH MERZ: (Through interpreter) Such debt can only be justified in very specific circumstances. These circumstances are Putin's war against Europe. We will defend ourselves with everything we have at our disposal in the coming years and decades, ladies and gentlemen.

NICHOLSON: Merz's plans mark a major mindset shift for a country historically dedicated to balancing the books. Christian Durr from the neoliberal Free Democrats stressed that Germany's fiscal conservatism is rooted in the desire to protect future generations and accused Merz of making a historical mistake.

(SOUNDBITE OF ARCHIVED RECORDING)

CHRISTIAN DURR: (Through interpreter) Mr. Merz, you argue that this change to our constitution is a necessary response to challenging times. But what you're really doing is pulling the trigger on unbridled debt.

NICHOLSON: Alexander Gauland, from the far-right Alternative for Germany party, which came second in the recent election, accused the future chancellor of a political bait and switch.

(SOUNDBITE OF ARCHIVED RECORDING)

ALEXANDER GAULAND: (Through interpreter) Mr. Merz, to get the top job, you deceived your voters by promising to respect our strict rules on borrowing, only to propose racking up billions in debt straight after the election.

NICHOLSON: But as Merz's victory today shows, he is by no means alone in doubting the strength of the transatlantic alliance.

(SOUNDBITE OF ARCHIVED RECORDING)

MERZ: (Through interpreter) Without the Americans in NATO, we are not in a position to defend ourselves, but we are changing that, step by step, by building up European defense capabilities.

NICHOLSON: Merz may have passed his first leadership test. Now he must form a government in order to spend the funds he has secured. For NPR ¹ÏÉñapp, I'm Esme Nicholson in Berlin.

(SOUNDBITE OF SYNC.EXE AND ULTMT'S "SUNEATER") Transcript provided by NPR, Copyright NPR.

NPR transcripts are created on a rush deadline by an NPR contractor. This text may not be in its final form and may be updated or revised in the future. Accuracy and availability may vary. The authoritative record of NPR’s programming is the audio record.

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