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Germany to Max Out its Credit Card on Defense Spending Spree

Meziechi Nwogu
The Geopolitical Economist
7 min readMar 7, 2025
Image Credit: the New York Times

Germany and the European Union are moving fast to boost their military spending. The new German coalition isn’t in place yet. Still, it has agreed to a deal allowing Germany to max out its credit card on military spending.

If approved, it will be one of Germany’s most significant steps toward militarization since it was permitted to have an army in 1955. The Outgoing Chancellor, Olaf Scholz, spent his time in office pledging significant changes but only somewhat delivering. Friedrich Merz isn’t Chancellor yet, but he’s already introducing substantial changes.

The deal between the left-wing Social Democrats and right-wing Christian Democrats would change the German constitution. It would remove all constraints regarding military spending. Germany’s constitution limits how much it can borrow. However, all military expenditures above 1% of GDP would not count toward that debt limit. If the money is for arms, Germany can borrow as much as it likes. The same agreement would unlock €500 billion ($540 billion) for spending on infrastructure and make it easier for states to borrow money.

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The Geopolitical Economist
The Geopolitical Economist

Published in The Geopolitical Economist

In The Global geopolitics, truth is one, but the wise interpret it differently.— Here, we interpret these diversions

Meziechi Nwogu
Meziechi Nwogu

Written by Meziechi Nwogu

We don’t merely report the news, we explain the news at the deepest level. We highlight the meaning and purpose of global events and why they are happening

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