German defense spending will receive a major increase, foreign media report.
A historic plan that will unlock billions of euros in additional investment in defense and infrastructure is likely to be sealed today.
The package proposed by the chancellor-in-waiting who won the election, Friedrich Merz, will outline strict rules around debt, paving the way for a spending increase.
Under the unprecedented plan, defense and security spending above 1% of gross domestic product (GDP) would be exempt from borrowing rules introduced after the 2008 financial crisis.
Aid to Ukraine could also be included in this exemption. The decision comes at a crucial moment in the war in Ukraine, as America appears to be withdrawing from Europe.
On Tuesday, the plan backed by Merz's conservative bloc, with the support of the Social Democrats (SPD) and the Green Party, passed the lower house of Parliament with 513 out of 720 votes in favor.
Today, the upper house is expected to give final approval, writes A2 CNN.
"We have felt for at least a decade a false sense of security. The decision we are taking today on defense readiness... can be nothing less than the first major step towards a new European defense community," Friedrich Merz said before the vote.
Around €500 billion (£418 million) will also be freed up to improve roads, schools, bridges and infrastructure, but will also pay for climate change measures as demanded by the Green Party.
Markets have so far reacted positively to the potential growth of Europe's largest economy. (A2 Televizion)
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