German Chancellor Friedrich Merz has given an upbeat assessment of his government's performance as lawmakers in Germany's lower house of parliament, the Bundestag, debated budget proposals two months after Merz took over the chancellorship. 

Conservative Christian Democrat(CDU) leader Merz also underlined the importance of Germany's decision to massively increase its defense spending.

The draft budget for 2025 to 2029, which was presented on Tuesday, includes record expenditures and debt, with the government hoping massive investment will set the faltering economy on a stable course.

What did Merz say about his government?

"We have taken on a lot, we have achieved some things, but there is still very much to do," the chancellor said in his speech to parliament during a budget debate.

Noting that some people in Germany were still worried about their futures, Merz said the mood in the country was improving again and struck an optimistic tone.

"We want to convey to all people in Germany the courage and confidence that it is worthwhile to work in our country, that it is a joy to live in Germany, and that, above all, we are very fortunate to live in a country of freedom and peace. That is a great blessing."

The coalition "will continue its work with courage and confidence," he said.

What did Merz say about defense?

The conservative leader called the constitutional change allowing higher defense spending essential to restoring the country's military capabilities.

The previous Bundestag had already relaxed the debt brake for defense spending. Under pressure from Russia's war on Ukraine and US President Donald Trump, NATO allies pledged at their summit in The Hague to raise defense spending to an unprecedented level.

"If we hadn't done this and hadn't been willing to spend more on our defense — if we'd followed the AfD and the Left Party — then NATO would probably have fallen apart in the 70th year of our membership," Merz said.

Merz, whose party rules alongside junior coalition partner the Social Democrats (SPD), also pledged continued support for Ukraine, "even against resistance from the political left and the pro-Russian right here in this house."

Slammed by far-right as 'paper chancellor'

The debate began with a fiery speech by the leader of the parliamentary group of the anti-immigration far-right Alternative for Germany (AfD) party, Alice Weidel, who was allowed to speak first as the head of the largest opposition group.

Weidel — whose party is against providing weapons to Ukraine — was not sparing with personal insults directed at Merz, calling him a "paper chancellor" and "chancellor of lies" while slamming him for allegedly breaking campaign promises and for his migration policy 

In his ensuing speech, Merz responded by saying that although a government needed to face opposition criticism, "no one in a democracy had to simply accept without contradiction half-truths, defamations and personal denigrations."

While you're here: Every Tuesday, DW editors round up what is happening in German politics and society. You can sign up here for the weekly email newsletter, Berlin Briefing.

Edited by: Wesley Rahn