German Greens threaten to torpedo defense spending deal

German lawmakers convened for a special parliamentary session Monday to discuss a proposal to increase the country's defense and infrastructure spending. 

It follows the announcement by election-winning Friedrich Merz of his intention to move ahead with a plan to increase borrowing to spend towards modernizing German infrastructure as well as boost the country's military.  

In order to make way for the record defense spend, constitutional changes are needed to make defense spending exempt from the country's so-called debt-brake - which limits how much the German government can borrow. 

To pass the constitutional hurdle, Merz has been looking to use the final weeks of the current parliament to reach the two-thirds majority required. The make-up of the new parliament, which begins on March 25, is expected to make reaching the threshold more difficult because of the increased presence of populist parties who oppose the changes. 

Merz has stressed the urgency to increase defense spending. After winning elections last month, he said it was "five minutes to midnight" for Europe, warning that a hostile Russia and an unreliable U.S. could leave Europe exposed.

"In view of the threats to our freedom and peace on our continent, whatever it takes must now also apply to our defense," he said. 

"We are counting on the United States of America to continue to stand by our mutual alliance obligations in the future. But we also know that the resources for our national and alliance defense must now be significantly expanded," he added. 

Talks expected to go late into Monday 

The German Green Party, whose support Merz requires to reach a two-thirds majority, signaled Monday it was not ready to support the deal. 

"We will not allow ourselves to be blackmailed, nor will we allow Friedrich Merz to abuse a difficult European security situation," said Greens party co-leader Franziska Brantner. 

"This is something that serves neither the country nor our interests in Europe."

It is expected that Merz's conservative party, and future coalition partners the Social Democrats, will hold talks late into Monday to try and gain Green support. Several MPs have suggested Green's position could be a negotiating tactic to try and extract concessions. 

"The Greens are making legitimate points," Finance Minister Joerg Kukies said on Monday in Brussels. "It is now a question of negotiations to hopefully address these points."