Germany is at a crossroads as political leaders debate how to fund a significant boost in defense spending.

With the 2025 Bundestag elections approaching, all potential coalition partners agree on the need for military upgrades but differ on the scale and financing.

Proposals include creating a special defense fund and possibly reforming the debt brake law.

Finance Minister Danyal Bayaz has suggested measures like cutting public holidays or introducing a solidarity tax for defense.

Meanwhile, Union and SPD are exploring a €400 billion special fund for the Bundeswehr, aiming to act before the new Bundestag convenes, as the current parliament lacks a blocking minority.

The urgency stems from growing security concerns in Europe and reduced U.

S. military support, pushing Germany and its EU partners to take greater responsibility for their defense.