Germany's next chancellor, Friedrich Merz, secured parliamentary approval for plans to relax strict debt rules to facilitate higher defense spending and a major infrastructure investment fund. The proposal, which passed with a 513-207 vote, enables a coalition government consisting of Merz's center-right Union bloc and the Social Democrats. The plan includes a 500 billion-euro fund for infrastructure improvements and climate-related initiatives, reflecting a significant shift in fiscal policy as Germany adapts to contemporary security and economic challenges.
The plans needed a two-thirds majority of at least 489 votes in parliament's lower house, the Bundestag, because they involve changes to Germany's strict self-imposed borrowing rules.
The decision helps smooth the way for a governing coalition of Merz's center-right Union bloc and the center-left Social Democrats of outgoing Chancellor Olaf Scholz after he won last month's election.
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