Germany's prospective chancellor, Friedrich Merz, secured parliamentary approval to modify strict debt rules, allowing more spending on defense amid concerns about the trans-Atlantic alliance and plans for a major infrastructure investment fund. The initiative, which passed with 513 votes, aims to release over 500 billion euros for enhancing Germany's aging infrastructure and strengthening defense. The coalition negotiations with the Greens were key to achieving this, incorporating climate-related spending. This marks a notable pivot in Merz's party's stance towards fiscal policies since the election.
Germany's would-be next chancellor, Friedrich Merz, won lawmakers' approval for plans to loosen debt rules for higher defense and infrastructure spending.
The ambitious plan, which includes funding for climate initiatives, marks a significant shift as it aims to address Germany's stagnant economy.
The decision provides momentum for Merz's prospective coalition with the Social Democrats, but the negotiations with the Greens were crucial to gain parliamentary votes.
With a 500 billion-euro investment fund planned, this approach looks to bolster defense, infrastructure, and climate initiatives over the next 12 years.
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