Germany approves Defence spending boost

Germany approved on March 21, 2025 a law to boost defence spending. This law will exempt spending on defence and security from Germany's strict debt rules and create a €500bn infrastructure fund over 12 years.

Among the €500bn, €100bn will be channeled into the climate and economic transformation fund, €300bn designated for the federal government and €100bn for the State governments.

The defence plan allows spending on aid for States "attacked in violation of international law" to be exempt from the debt brake. In doing so, Germany has approved an additional €3bn in military aid for Ukraine.