Germany's Union and SPD Agree on Historic €500 Billion Infrastructure and Defense Package
The proposed measures include loosening the constitutional debt limit for defense spending and creating a special fund for infrastructure improvements.
- Union and SPD reached an agreement on a massive financial package to address defense and infrastructure needs, totaling €500 billion.
- The plan includes a constitutional amendment to exempt defense spending above 1% of GDP from Germany's debt brake.
- A special fund will be created to modernize infrastructure, addressing long-standing deficiencies across the country.
- Critics, including the FDP and economists like Veronika Grimm, warn that the debt-financed package could pose significant economic risks without structural reforms.
- Supporters, including Defense Minister Boris Pistorius, hail the agreement as historic, emphasizing its potential to strengthen Germany's military and economic position.
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