German Coalition Reaches Agreement on €500 Billion Financial Package

The plan includes funding for defense, infrastructure, and climate initiatives, with constitutional amendments set for a Bundestag vote next week.

Union, SPD, and Greens have agreed on a €500 billion debt-financed package for defense, infrastructure, and climate neutrality, with €100 billion allocated to the Climate and Transformation Fund.
The financial package includes constitutional amendments to enshrine climate neutrality by 2045 and expand the definition of national security to include cyber defense and civil protection.
The Federal Constitutional Court rejected legal challenges from the AfD and Left Party to prevent the outgoing Bundestag from voting on the package before the new parliament convenes.
Critics, including the FDP and BSW, argue that the package prioritizes debt and climate measures over economic reforms and social equity, raising concerns about long-term fiscal impacts.
The Bundestag is scheduled to vote on the constitutional changes next Tuesday, with coalition leaders confident of securing the required two-thirds majority.