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Germany's Debt Plan Faces Political Hurdles as Key Vote Looms

Disputes over a €500 billion debt package for defense, infrastructure, and climate goals threaten coalitions in Bavaria and beyond.

  • The proposed €500 billion debt package requires constitutional amendments, including loosening Germany's debt brake, to fund defense, infrastructure, and climate initiatives.
  • Bavaria's coalition between the CSU and Freie Wähler faces internal discord, with Freie Wähler leader Hubert Aiwanger opposing the plan over fiscal concerns.
  • Aiwanger’s stance is pivotal, as Bavaria's six Bundesrat votes could determine the package's approval, with a two-thirds majority needed in both the Bundestag and Bundesrat.
  • The package allocates €100 billion to climate transformation efforts, a point of contention for some conservatives who question the feasibility and legal clarity of climate neutrality goals.
  • CSU leader Markus Söder has convened a crisis meeting to secure Freie Wähler's support, while speculation grows about potential coalition realignments in Bavaria if disagreements persist.
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