Germany Considers €400 Billion Defense Fund Amid Rising Security Challenges

Union and SPD discuss new defense and infrastructure funds as Germany rethinks security strategy following U.S. policy shifts and the Ukraine war.

A €400 billion defense fund has been proposed by economists to strengthen Germany's military capabilities, with a focus on advanced technologies and European self-reliance.
The proposal includes measures such as a drone defense system for NATO's eastern flank and enhanced underwater surveillance in the Baltic Sea.
Discussions also involve a potential €500 billion infrastructure fund, reflecting broader investment needs in national resilience and modernization.
Political negotiations are underway to establish a new special fund, requiring a constitutional amendment and a two-thirds parliamentary majority, which may face opposition in the newly elected Bundestag.
The urgency of these measures is underscored by the deteriorating U.S.-Europe relations, highlighted by recent tensions between President Trump and Ukraine's President Zelenskyy.