Friedrich Merz, leader of Germany's CDU, aims to lift stringent fiscal rules, notably the "debt brake," to boost defense spending significantly. His proposal, supported by potential coalition partners SPD, seeks to exempt defense budgets exceeding 1% of GDP from borrowing limits. Additionally, a €500 billion fund is proposed for infrastructure investment. However, the Greens oppose these plans, stressing that they neglect essential investments in clean energy. They advocate for redefining "defense" to incorporate sustainable initiatives, wanting to ensure balance between military and environmental funding.
Merz's proposal aims to exempt defense spending exceeding 1% of GDP from the debt brake, while the Greens demand reforms to support clean energy investment.
Germany's strict fiscal rules have hindered governmental responses to crises, including the Covid-19 pandemic, leading to calls for the reform of the debt brake.
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