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.