Overview

• The proposed package includes €500 billion in debt-financed investments, with €100 billion earmarked for climate measures and €100 billion for state-level projects.
• Union, SPD, and Greens have negotiated a compromise but face potential dissent within their ranks, raising questions about securing the required two-thirds majority in both the Bundestag and Bundesrat.
• Opposition parties, including the FDP and AfD, have filed legal challenges at the Federal Constitutional Court, citing insufficient deliberation time and procedural concerns.
• The Bundesrat vote on Friday is also uncertain, with key states like Bavaria needing to resolve internal coalition disputes to ensure support.
• Proponents argue the package is critical for national security and infrastructure, while critics warn of risks to generational equity and fiscal sustainability.