German Parties Agree on €500 Billion Finance Package for Defense and Infrastructure
The deal, requiring a constitutional amendment, includes loosened debt limits and significant climate investments, but faces criticism over political compromises.
- Union, SPD, and Greens reached an agreement on a €500 billion finance package to fund defense, infrastructure, and climate initiatives.
- The package includes a constitutional amendment to loosen Germany's debt limits, allowing for increased borrowing to support these investments.
- The Greens secured a commitment for €100 billion of the funds to be allocated to climate protection measures, a major win for the party.
- Critics, including the FDP, accuse Friedrich Merz of abandoning core fiscal principles and capitulating to Green demands during negotiations.
- The Bundestag is set to vote on the package next week, with Schleswig-Holstein's Environment Minister Tobias Goldschmidt supporting the amendment in the Bundesrat.
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