Published by Global Banking & Finance Review®
Posted on March 18, 2025
1 min readLast updated: January 24, 2026
Add as preferred source on GoogleGermany's increased borrowing for defence marks a new era for European security, according to Friedrich Merz. This could lead to a new European defence community.
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)
The article discusses Germany's increased borrowing for defence spending and its implications for European security.
Friedrich Merz is likely the next Chancellor of Germany and he addressed the Bundestag about defence spending.
It is a proposed initiative for collective defence efforts in Europe, potentially including non-EU countries.
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