Merz sees new era for European defence with German spending surge

BERLIN (Reuters) - Germany's planned surge in borrowing to fund defence spending and revive growth heralds a new era for European security, the country's likely next Chancellor Friedrich Merz told the Bundestag lower house of parliament on Tuesday.

"We have for at least a decade felt a false sense of security," said Merz, adding the post-war peace dividend had been used up long ago and a total rebuilding of Germany's defence capabilities was needed.

"The decision we are taking today on defence readiness .. can be nothing less than the first major step towards a new European defence community, which also includes countries that are not members of the European Union," he said.

(Reporting by Madeline Chambers; editing by Matthias Williams)