German Bundesrat Approves Historic €500 Billion Financial Package

The package, which relaxes the constitutional debt brake for defense and infrastructure spending, now awaits presidential approval to become law.

The Bundesrat passed the financial package with a two-thirds majority, securing 53 out of 69 votes, while four states abstained due to internal coalition disagreements.
The package includes a €500 billion special fund, with €100 billion allocated to states and another €100 billion designated for climate protection and economic transformation.
Germany's constitutional debt brake has been loosened, allowing borrowing for defense, civil protection, intelligence, and cybersecurity spending exceeding 1% of GDP.
Proponents liken the initiative to a 'German Marshall Plan,' highlighting its transformative potential, while critics caution about rising debt and fiscal pressures.
The package must now be reviewed and signed by President Frank-Walter Steinmeier to ensure its constitutional validity.