Germany’s second chamber of parliament, the , on Friday, voted in favor of a massive spending package that is set to into defense, infrastructure and climate protection.
Earlier this week, German to the constitution that will allow unprecedented levels of government spending.
The debt reform plan exempts defense spending from so-called “debt brake,” a that limits government borrowing. The plan also earmarks a special €500 billion special infrastructure investment fund.
The proposal to loosen the debt brake was pitched by the and , who are trying to move quickly to push the reform through the outgoing parliament.
There were fears the plan could have been blocked in the new parliament after far-left and far-right lawmakers, who oppose the plan in principle, in the February election.
The plan , the Bundestag, after were promised €100 billion ($109 billion) in climate investment would be included.
Last major hurdle for debt reform
Approval from , which represents Germany’s 16 federal states, was necessary for the reform to pass into law.
At least two-thirds of members must vote for the amendment for it to pass. The vote was not a sure thing, as some regional parties voiced objections.
Why does Germany want to reform debt rules?
For CDU leader, and Germany’s next chancellor, Friedrich Merz, getting the debt brake reform passed before taking office would be a big win. The CDU is in coalition talks with the SPD, and hopes to get a coalition government on its feet by the end of April.
After the CDU came out on top in last month’s general election, Merz went on television and warned that the administration of US President Donald Trump , and that Germany must act quickly to bolster its defense capabilities.
under Trump, who has embraced Russian narratives on the war in Ukraine, while calling into question Washington’s commitment to European security.
“My absolute priority will be to strengthen Europe as quickly as possible so that, step by step, we can really achieve independence from the USA … I have absolutely no illusions about from America,” Merz said.
Edited by: Louis Oelofse
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