Germany’s Likely Next Chancellor Pushes for €3 Billion Ukraine Aid Package Before Parliament Changes

Friedrich Merz, the leader of Germany’s center-right CDU/CSU alliance and the frontrunner to become the country’s next chancellor, is pushing for a $3.2 billion (€3 billion) defense aid package for Ukraine to be approved before the current parliament is dissolved, French media outlet Le Monde reported on March 4.

Merz announced Tuesday that his party, along with the center-left Social Democrats (SPD), will propose an unprecedented increase in defense and infrastructure spending.

The urgency of these negotiations has grown amid Donald Trump’s rift with Ukrainian President Volodymyr Zelenskyy and the suspension of U.S. military aid to Kyiv.

Speaking at a press conference, Merz said the two parties would introduce proposals next week to exempt additional defense spending from Germany’s constitutional “debt brake.”

He vowed to do “whatever it takes” for defense, citing threats to European security. If implemented, this move would mark a significant departure from Germany’s decades-long reliance on the U.S. for protection.

Merz’s proposal includes exempting defense spending from the debt brake if it exceeds 1% of Germany’s GDP—approximately $47.7 billion (€45 billion)—and establishing a $535 billion (€500 billion) infrastructure fund over the next decade to jumpstart the country’s struggling economy.

Crucially, Merz emphasized the need for swift action on the $3.2 billion aid package for Ukraine, which has faced weeks of delays. He revealed plans to meet outgoing Chancellor Olaf Scholz to discuss the urgency of approving the funds as off-budget expenditure before the new parliament convenes at the end of the month.

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CSU leader Markus Söder echoed Merz’s message, declaring that Germany must “send a message to our enemies and our friends: Germany is here and is not pulling back.” He noted that recent events had deeply shaken Germany’s trust in America’s role as a moral leader.

The CDU/CSU and SPD are working to push the package through the outgoing parliament, where they hold a two-thirds majority with the support of the Greens. However, Green Party leader Katharina Dröge signaled that her party would not give automatic approval without climate-related investments included in the deal.

Meanwhile, experts estimate that Germany would need between €200 billion and €400 billion to modernize its military.

Current Defense Minister Boris Pistorius hailed the spending proposals as a “historic day for the army and for Germany,” saying that this financing would enable Germany to take a leading role in European security.

Earlier, reports emerged that Germany’s Rheinmetall will establish a repair center in Ukraine for German-made tanks and artillery, the company’s CEO, Armin Papperger.

Papperger confirmed that logistical routes are currently being developed to ensure a fast and efficient supply of spare parts to the facility.

The repair center will service infantry fighting vehicles (IFVs) Marder, as well as Leopard 1 and Leopard 2 tanks and German-made artillery systems.