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German parties agree on plan to boost infrastructure, defense

Mar 05, 2025

Berlin [Germany], March 5: German parties seeking to form the next government agreed on Tuesday to set up a 500-billion-euro (about 531 billion U.S. dollars) infrastructure fund and to exempt defense spending from constitutionally enshrined debt brake.
The proposal by Germany's CDU/CSU union and the Social Democratic Party (SPD) aims to exempt defense spending above 1 percent of GDP from the debt brake's limitations.
The constitutional debt brake was introduced in 2009 to limit the country's budget deficit.
According to the parties' announcement, a motion to amend the Basic Law will be introduced next week in the Bundestag, the lower house of parliament. A two-thirds majority in the Bundestag will be needed to approve constitutional amendments.
The CDU/CSU won the country's federal election and is negotiating with the SPD to form a new government.
Germany and Europe must rapidly strengthen their defense capabilities, said Friedrich Merz, chairman of the Christian Democratic Union (CDU). "Whatever it takes."
Source: Xinhua News Agency