"The core 524.5 billion ($609,35 bn) budget includes more than 97.7 billion in new loans 8 billion more than the budget experts from the center-right and center-left coalition government had envisaged just a few weeks ago. But there's also an additional 82 billion of debt, which will be used to upgrade the Bundeswehr, invest in the country's ailing infrastructure, and in climate protection measures."
"Earlier this year, the Social Democrats (SPD), Christian Democrats (CDU), Christian Social Union (CSU) and Green Party agreed on two new special funds that are not subject to the rigid debt rules enshrined in Germany's Basic Law. The Bundeswehr will receive 500 billion over the next few years and there is another 500 billion set aside for infrastructure, roads and railways, and climate protection. Funds from these assets will be drawn on for the first time in 2026."
Germany's budget committee approved Finance Minister Lars Klingbeil's budget, requiring about €180 billion in new borrowing, the second-highest after the COVID-19 pandemic. The core €524.5 billion budget contains €97.7 billion in new loans, €8 billion more than coalition experts expected, plus an additional €82 billion of debt exempt from the constitutional 'debt brake' to upgrade the Bundeswehr, repair infrastructure, and fund climate measures. Two special €500 billion funds for the military and for infrastructure and climate were agreed earlier, with assets to be tapped beginning in 2026. SPD budget expert Thorsten Rudolf expressed cautious optimism amid prolonged crises.
Read at www.dw.com
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