Germany’s Bundesrat Set to Vote on €500 Billion Spending Package

Germany’s Bundesrat, the upper house of parliament, is set to vote on Friday on a massive €500 billion ($546 billion) spending package aimed at revitalizing Europe’s largest economy and strengthening its military for a new era of European collective defense. The vote represents the final major hurdle before the package becomes law, unlocking billions in investments for infrastructure and defense amid concerns over economic stagnation and shifting global security dynamics.

The legislation, which passed the Bundestag earlier this week with support from the conservatives, Social Democrats (SPD), and Greens, is widely expected to clear the Bundesrat. It proposes easing Germany’s constitutionally enshrined debt brake to allow higher government spending, a move seen as crucial for boosting economic growth after two consecutive years of contraction. The conservatives and SPD are pushing to finalize the bill before the next Bundestag convenes on March 25, fearing opposition from far-left and far-right lawmakers.

For Chancellor-in-waiting Friedrich Merz, securing this legislation before taking office would mark a significant early victory. Merz, who led the conservatives to victory in last month’s election, has stressed the urgency of the package amid shifting U.S. policies under President Donald Trump, which have raised concerns about Europe’s security posture against Russia and China. He aims to finalize coalition talks with the SPD by Easter, setting the stage for his leadership in a rapidly evolving geopolitical landscape.

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