Germany has agreed to amend its constitution to allow for a credit-based special defence fund of €100 billion ($107.35 billion) proposed after Russia invades Ukraine, the German finance ministry announced on Sunday.

Germany’s centre-right opposition and the ruling coalition, along with the centre-left Social Democrats (SPD), Greens and pro-business Free Democrats (FDP), said they had reached the two-thirds majority limit needed to exempt the defence fund’s constitutional debt.

Liberal Democrat leader Christian Lindner led the talks, SPD Defence Minister Christina Lambrecht, Greens leader Annalena Baerbock and Opposition vice whip Matthias Middleberg.

The funding will increase Germany’s conventional defence budget by around €50 billion over several years and enable the country to meet the NATO goal of spending 2 per cent of its economic output on defence each year.