Germany's Bundesrat recently approved a substantial spending package aimed at boosting military capabilities and revamping infrastructure, requiring a two-thirds majority to pass. Proposed by the incoming government led by Friedrich Merz, this initiative comes in response to perceived security threats, notably after US President Trump's actions concerning Russia. The plan allows for increased defense spending without breaching constitutional debt limits and includes a massive 500 billion euro fund for infrastructure projects, promising significant financial commitments that aim to rejuvenate Germany's economy after recent contractions.
The package is the brainchild of the incoming government of the likely next chancellor Friedrich Merz, whose centre-right CDU/CSU is in coalition talks with the centre-left Social Democrats.
Bavaria's state premier Markus Söder stated that 'we must do everything we can to ensure that Germany once again becomes one of the strongest armies in Europe and can protect itself'.
The plan exempts defence spending above one percent of GDP from strict debt rules and sets up a 500-billion-euro fund for infrastructure over 12 years.
Söder labelled the massive infrastructure spending a new 'German Marshall Plan', referencing the American post-World War effort to rebuild western Europe.
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