German Parliament Advances €1 Trillion Debt Package for Defense and Infrastructure

A bipartisan agreement proposes constitutional changes to ease debt limits for investments in climate goals, defense, and public infrastructure.

CDU/CSU, SPD, and Greens reached consensus on a nearly €1 trillion debt-financed package, including €500 billion for infrastructure and climate initiatives.
The plan requires a constitutional amendment to exempt these expenditures from the existing debt brake, with final Bundestag approval expected on Tuesday.
Key provisions include €100 billion for the Climate and Transformation Fund and €100 billion for state-level infrastructure investments.
Defense spending will see relaxed debt restrictions, extending to areas like cyber security and aid to nations under unlawful attack.
The Greens secured commitments to ensure funds are used for additional investments, safeguarding climate neutrality goals for 2045 in the constitutional framework.