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German parliament in race against time to sign off on new defence fund
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The German parliament is racing to approve a new defense fund before the current legislative session ends. Friedrich Merz, expected to become chancellor, is pushing for increased defense spending amid geopolitical tensions. The fund proposed by the current government, which has nearly run out, could be replaced with a new €200 billion fund. However, political challenges, including a potential blocking minority in the new Bundestag and opposition to relaxing the debt brake, complicate the process. Merz is also seeking a coalition with the SPD, but far-left and far-right parties oppose military spending increases. Discussions between outgoing Chancellor Scholz and Merz are ongoing.
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