The German government has approved an ambitious plan to borrow more than €800 billion by 2030 for the large-scale rearmament of the Bundeswehr and infrastructure modernization. This decision marks a historic departure from decades of fiscal restraint amid growing geopolitical threats.
The German cabinet has approved a program that includes a significant increase in borrowing — in particular, around €200 billion already next year. Annual military spending could reach €109 billion. To achieve this, constitutional changes are planned to exempt defense expenditures from the “debt brake” (Schuldenbremse).
The initiative fits into the broader European context of ReArm Europe / Readiness 2030, presented by the European Commission in 2025. The plan aims to mobilize up to €800 billion for the defense of the entire EU by 2030, including joint procurement and new financial instruments such as SAFE loans worth €150 billion.
Berlin’s decision reflects a shift in German security policy following Russia’s full-scale invasion of Ukraine in 2022, when the first special fund of €100 billion was created. The new plan is significantly larger in scale and is designed for the long term.
Experts note that this will allow Germany to become one of Europe’s leading military powers. However, the increase in public debt raises questions among some politicians and economists about the long-term sustainability of the budget.
The plan still requires final approval in the Bundestag, but broad support is expected given the current geopolitical situation.