Friedrich Merz, Germany’s incoming Chancellor, has secured constitutional reforms enabling unlimited defense spending, marking a historic shift in fiscal policy. The reforms exempt military expenditures exceeding 1% of GDP from debt limits and establish a €500 billion infrastructure fund. Merz aims to rebuild Germany’s military strength to deter Russia independently of U.S. support. This transformation follows years of underinvestment and reflects growing concerns over transatlantic ties amidst Russia’s aggression and U.S. unpredictability
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