German lawmakers have voted to significantly increase defense and infrastructure spending, marking a historic shift for the country.

The law exempts defense and security spending from strict debt rules and establishes a €500 billion infrastructure fund.

The move is seen as a response to Russia’s invasion of Ukraine and concerns over U.S. commitment to NATO.

While the Bundestag approved the law with a two-thirds majority, it still needs approval from the Bundesrat.

The changes would allow Germany to exceed its debt limits for defense spending and address urgent infrastructure needs, the BBC has reported.

The vote is a major political victory for Friedrich Merz, who is set to become Germany’s next chancellor.

Written by B.C. Begley