In his first major parliamentary address since being inaugurated last week, Merz said his government would "provide all financial means necessary" to build up the long-underfunded German military.

His government has already cleared the way for hundreds of billions of euros in extra funding by getting a fiscal plan passed by the last parliament.

"Strengthening the Bundeswehr (armed forces) is our top priority," Merz said. "The German government will provide all the financial resources the Bundeswehr needs to become Europe's strongest conventional army.

"This is appropriate for Europe's most populous and economically powerful country. Our friends and partners also expect this from us. Indeed, they practically demand it," he said.