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Germany Commits to Building Europe’s Strongest Army and Economic Revival

Chancellor Friedrich Merz outlines plans for defense expansion, Western unity on Ukraine, and economic reforms in his first major Bundestag speech.

Friedrich Merz delivers his first speech as German Chancellor in the parliament in Berlin, Germany, Wednesday, May 14, 2025. (AP Photo/Markus Schreiber)
BERLIN, GERMANY - MAY 05: Soldiers from the guard battalion stand with torches during tattoo ceremony for outgoing German Chancellor Olaf Scholz hosted by the Bundeswehr in honour of his service on May 05, 2025 in Berlin, Germany. The Bundestag is scheduled to elect Friedrich Merz of the Christian Democrats (CDU) and confirm his new government tomorrow. (Photo by Maja Hitij/Getty Images)
A Boxer armoured fighting vehicle of the Bundeswehr, the German armed forces, is driven during a demonstration for members of the media on April 9, 2025 near Gardelegen, Germany.
German Chancellor Friedrich Merz attends a plenary sessionin the parliament in Berlin, Germany, Wednesday, May 14, 2025. (AP Photo/Markus Schreiber)

Overview

  • Chancellor Merz pledged to allocate all necessary financial resources to transform the Bundeswehr into Europe’s strongest conventional army, addressing decades of underinvestment.
  • Merz emphasized the importance of maintaining unity between Europe and the United States in supporting Ukraine and rejected the notion of a dictated peace in the ongoing conflict.
  • The German government plans to meet NATO’s 5% GDP defense spending target, signaling a significant shift in its defense and security policy.
  • Economic reforms were outlined to rejuvenate Germany’s economy, including infrastructure investment, tax cuts, and reducing bureaucratic hurdles to restore its status as a global growth engine.
  • Merz thanked U.S. President Trump for supporting a 30-day unconditional ceasefire initiative in Ukraine, aiming to create a window for peace negotiations.