Overview

• Union and SPD propose a €500 billion infrastructure fund, which includes defense spending, but require Green Party backing for constitutional changes.
• The Greens demand guarantees that infrastructure funds will prioritize climate protection, modernization, and public transit, not political concessions or tax cuts.
• Union leader Friedrich Merz signals willingness to allocate part of the fund for climate initiatives, aiming to secure Green Party approval.
• East German mayors and local leaders emphasize the need for reduced bureaucracy to ensure efficient use of infrastructure funds for schools, housing, and transit.
• Failure to reach an agreement could lead to alternative coalition scenarios, including the possibility of a minority government or renewed elections.