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German debt deal to exempt defence spending above 1% of GDP from debt brake, source says

ReutersMar 14, 2025 12:30 PM

BERLIN, March 14 (Reuters) - A reformed debt brake will exempt defence spending of above 1% of gross domestic product (GDP) under a deal reached by three major German political parties, a source familiar with the matter said on Friday.

The details were not immediately clear.

Election winner Friedrich Merz had tried to address the Greens' concerns by offering to expand the scope of defence spending to include civil defence and intelligence spending.

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