Germany's Bundesrat is voting on a significant spending package that allows unprecedented government borrowing for defense and infrastructure. The recent constitutional amendment exempts defense spending from Germany’s debt brake. This package includes a 500 billion euro infrastructure investment fund. The CDU and SPD pushed this reform through the Bundestag, with support for climate investments essential for the Greens. However, the reform faces potential obstruction in the Bundesrat due to opposition from some regional parties, creating uncertainty about its passage.
Germany's government is poised to vastly increase spending on defense and infrastructure by implementing a debt reform that bypasses constitutional borrowing limits.
The recent debt reform plan aims to inject 500 billion euros into infrastructure while allowing military spending breaches of the debt brake.
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