Newly minted Chancellor Friedrich Merz secured a coalition deal this week that opens the door to unlimited defense spending. Now, he faces a far harder task: turning Germany into a military power strong enough to deter Vladimir Putin without U.S. support.

The agreement amounts to a sweeping and historic overhaul of Germany’s approach to defense. It encompasses the creation of a permanent off-budget fund and a new National Security Council. It also includes a firm commitment to its NATO obligations, a major upgrade of Germany’s cyber and intelligence capabilities and the introduction of measures to streamline procurement and integration efforts with the EU. The country has pledged, for the first time since 1945, to build a military capable of defending both national and allied territories.

"Germany is back on track,” Merz said after the signing. "We will fulfill our obligations in terms of defense.”