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German Bundestag Approves Historic €500 Billion Financial Package

The package, which includes major investments in infrastructure, climate protection, and defense, awaits a crucial Bundesrat vote as legal challenges loom.

  • The Bundestag passed the financial package with a two-thirds majority, securing 513 votes in favor and 207 against.
  • The €500 billion fund allocates €100 billion for climate protection and achieving climate neutrality by 2045, a key Green Party demand.
  • Defense spending exceeding 1% of GDP will now be exempt from Germany's constitutional debt brake, enabling increased military investments.
  • The Bundesrat is set to vote on the package on March 21, requiring a two-thirds majority, while FDP-led legal challenges may pose obstacles.
  • State governments will benefit from €100 billion in infrastructure funding, distributed based on the Königssteiner Schlüssel formula.
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