Germany Weighs Special Funds For Defense, Infrastructure

The parties negotiating Germany's next government are considering the swift creation of two special funds—one for defense and another for infrastructure—potentially totaling hundreds of billions of euros, Reuters reporter Andreas Rinke wrote, citing three sources familiar with the discussions.

Officials are now pressured to accelerate efforts to strengthen Germany’s defense capabilities and support Ukraine.

Economists advising the likely coalition partners estimate that Germany will need approximately €400 billion ($415 billion) for defense and an additional €400–500 billion for infrastructure investments, the sources said.

A heated meeting between Ukrainian President Volodymyr Zelensky and U.S. President Donald Trump at the White House has increased the sense of urgency in Berlin, prompting officials to accelerate efforts to strengthen Germany’s defense capabilities and support Ukraine.

Senior figures from Germany's conservative and Social Democratic parties began exploratory talks on forming a coalition government.

Friedrich Merz, leader of the conservative bloc that won last week’s election, aims to establish a government by Easter.

The three parties involved in the negotiations—the Christian Democrats (CDU), the Bavarian Christian Social Union (CSU), and Chancellor Olaf Scholz’s Social Democrats (SPD)—are currently working out the details of the proposed special funds. However, no final decision has been made yet, the sources added.