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Germany's Bundesrat Poised to Approve Historic €500 Billion Financial Package

The vote, crucial for the CDU-SPD coalition, would relax debt rules to fund infrastructure, defense, and climate projects.

  • The Bundesrat is voting today on a €500 billion financial package that includes constitutional amendments to relax Germany's debt brake for targeted investments.
  • A two-thirds majority, or 46 out of 69 votes, is required for approval, with Bavaria's backing playing a pivotal role after the Freie Wähler reversed their opposition under CSU pressure.
  • The package allocates €100 billion to states for infrastructure and climate projects and allows structural debt up to 0.35% of GDP for regional governments.
  • Despite internal tensions, states like Bremen and Mecklenburg-Vorpommern have confirmed their support, citing the package's long-term benefits for regional development.
  • The FDP's legal challenges to block the package have been unsuccessful, clearing the way for what would be a significant shift in Germany's fiscal policy framework.
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