The German road to the European… re -equipment (ie the strengthening of it was opened yesterday (21.3.25) defense), as it passed through the Federal Council of Governments of its 16 states Germany (Bundesrat) The Mertz package.
This was the second and final prerequisite for the financial package – mammoth (with the edge of strengthening the defense) to which CDU, SPD and Greens agreed after being voted by the Bundestag on 18 March 2025.
The next step is to sign – next week – the new law by the President of the Federal Republic of Germany, Frank – Walter Steinmeier.
Also, on Monday, March 24th, the CDU’s total CDU -SPD leader Friedrich Mertz will be presented on Monday, March 24, while the new Bundestag will be formed on March 25th. As for the formation of a government, this is expected to have been done before Easter.
Sources of Newsit.gr from Berlin report that the “details” of changes in the Constitution -which form the basis of the upcoming government program -“will be regulated under an executive law”.
Even before you see these “details”, you can draw some first conclusions:
- Germany is the first country -a member of the EU, which is legally adopted -and even at the highest level, that is, that of the Constitution -the new European strategy for the re -equipment of Europe, which was specifically formulated in the White Bible of the Commission entitled Rearm Europe on March 19th, including other March 19th. expenditure.
- The Mertz package is much more generous towards defense spending than anything mentioned in the White Bible of the Commission. And that’s why:
- It is now based on a constitutional provision (with the vote of Bundestag 2/3) -and not just some law (which can change a 50% majority + 1). On the contrary, the White Paper is a general plan for the time being, which has a series of unspecified and displaced (among EU member states) points in relation to its two basic pillars, namely the 150 billion euro fund.
It is to wonder how and when the disputes will be resolved over the funding of the 150 billion fund. Euro, when they are unable to agree on a new (small) aid package in Ukraine, as it appeared in the EU’s regular (20.3.25) regular meeting.
With regard to its second basic pillar, that is, the activation of national escape rhetoric to increase defense expenditure is simply a possibility that a Member State can use, while another may not use it.
- It provides “unlimited”, according to the German press, the ability of the German state borrowing, both on a quantitative and time level. Carefully read the constitutional modification, could say that it is not just a “relaxation” of the debt brake, but a … full overflow.
What does the new provision say? The amount by which defensive costs exceed 1% of GDP is deducted from lending revenue which will be taken into account.
What did the previous constitutional layout mention? The budget of the federation and the states must first be balanced without loan revenue and is regulated that loan revenue does not exceed 0.35% of GDP.
The above constitutional provision therefore ceases to apply to the Federation and will only apply to federal states, which until yesterday was not able to borrow. But it is no longer true for the Federation, which can now be borrowed without limitation, while the 1% threshold is not the case (as was 0.35%) only concerns the fact that loans above it will be taken into account.
On the contrary, the White Bible of the Commission provides for the exception of the excessive deficit rule only in the increase in defense spending, since it does not exceed 1.5% of GDP annually and this for just 4 years, although the expansion window is explicitly open.