The federal government has agreed with the opposition CDU/CSU parliamentary group to create a special fund of 100 billion euros to better equip the Bundeswehr.

The talks were "successfully ended tonight", said the representatives of the SPD, Greens and FDP as well as the Union on Sunday evening via the Federal Ministry of Finance.

Together they have the two-thirds majority required to enshrine the debt-financed special fund in the Basic Law.

The money will only benefit the Bundeswehr.

Measures demanded by the Greens, for example to protect against digital attacks or to train partners, “are financed from the federal budget”.

The coalition promised that the economic plan with the concrete procurement projects for the Bundeswehr would be decided upon the establishment of the fund.

Finance Minister Christian Lindner expressed his satisfaction with the agreement.

Two goals have been achieved, said the FDP chairman of the German Press Agency: "First, we are strengthening the Bundeswehr in a one-time financial effort." Second, the debt brake will remain in the Basic Law.

Announced by Scholz at the end of February

The federal government is to invest 100 billion euros in better equipment for the Bundeswehr in the coming years.

The money should come from loans that are not counted towards the debt brake, i.e. the credit limit for the federal budget.

To this end, the SPD, Greens, FDP and the opposition Union want to change the Basic Law together.

"By anchoring it in the constitution, the special exceptional character of the Bundeswehr is emphasized," said Lindner.

This is also important for combating inflation.

Chancellor Olaf Scholz (SPD) announced the billion-euro fund three days after the Russian attack on Ukraine.

In the Federal Ministry of Finance, Lindner, Defense Minister Christine Lambrecht (SPD) and Foreign Minister Annalena Baerbock (Greens), among others, met with the deputy Union parliamentary group leader Mathias Middelberg as the negotiator of the opposition group on Sunday evening.

The money is to be used to increase the regular defense budget of around 50 billion euros over several years.

In this way, Germany wants to meet the NATO goal of spending two percent of economic output on defense each year.

That would currently be around 70 billion euros.

In the coming years, the NATO goal should be "achieved on average over several years," according to the statement - not necessarily every year.

When the special fund is exhausted, "the necessary funds to achieve the then valid NATO capability goals will continue to be made available".

According to current estimates, the special fund could last around five years, i.e. until the end of 2026.

disagreement over redemption

The Union was apparently unable to assert itself with the demand to agree on a repayment plan for the planned additional debt now.

"After the claim, the repayment will also begin within a reasonable period of time," the statement says.

The government's draft law establishing the fund stipulates that repayment will only begin after all funds have been used.

Defense Minister Lambrecht must also present a "business plan with specific procurement plans for the special fund" for the law to be passed, which is to be passed with the establishment law.

So far, the government has only planned to record the expenditure for 2022 from the special fund in an economic plan.

"An initiative to accelerate procurement will be launched immediately and before the parliamentary summer recess," it said.