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Bundestag Approves Historic €500 Billion Financial Package

The package includes constitutional amendments easing debt rules and sets the stage for a new coalition government under Friedrich Merz.

  • The Bundestag passed the €500 billion financial package with the required two-thirds majority, including constitutional amendments to loosen debt rules for defense and infrastructure spending.
  • The package establishes a special fund for infrastructure and climate neutrality, with €100 billion allocated specifically for climate measures.
  • Defense spending exceeding 1% of GDP will now be excluded from Germany's debt brake under the new constitutional amendments.
  • The Bundesrat is scheduled to vote on the package on March 21, 2025, requiring a two-thirds majority for final approval.
  • Opposition parties criticized the package for its scale and potential burden on future generations, while the Federal Constitutional Court rejected legal challenges to delay the vote.
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