Germany Nears Historic Finance Reform with €500 Billion Debt-Funded Package
Union, SPD, and Greens finalize a landmark agreement to amend the constitution, enabling major investments in defense, infrastructure, and climate initiatives.
- The proposed €500 billion package aims to fund additional investments in infrastructure, climate initiatives, and defense, requiring changes to Germany's constitution.
- A key provision allocates €100 billion to a Climate and Transformation Fund, embedding 'climate neutrality by 2045' into the constitution for the first time.
- The Bundestag and Bundesrat must achieve a two-thirds majority for the constitutional amendments, with uncertainties remaining over Bavaria's support in the Bundesrat.
- Critics, including some CDU and FDP members, argue the plan undermines fiscal responsibility and lacks sufficient deliberation time for such sweeping changes.
- The package is seen as a significant political compromise, with the Greens securing climate priorities and the CDU-SPD coalition emphasizing national security and economic growth.



























