German parliament approves Merz's spending surge as allies cheer


  • World
  • Tuesday, 18 Mar 2025

FILE PHOTO: A view shows the front of the Reichstag building, the seat of the German parliament, the Bundestag, in Berlin, Germany March 5, 2025. REUTERS/Annegret Hilse/File Photo

BERLIN (Reuters) -Germany's parliament approved plans for a massive spending surge on Tuesday, throwing off decades of fiscal conservatism in hopes of reviving economic growth and scaling up military spending for a new era of European collective defence.

The approval in the Bundestag hands conservative leader Friedrich Merz a huge boost, giving the chancellor-in-waiting a windfall of hundreds of billions of euros to ramp up investment after two years of contraction in Europe's largest economy.

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