German Parties Agree on €500 Billion Finance Package for Defense and Infrastructure

Union, SPD, and Greens reach consensus on constitutional amendment to unlock funds for modernization and security.

The finance package includes €500 billion in loans exempt from the debt brake, with €100 billion allocated for climate initiatives and green transformation.
The Constitutional Court dismissed legal challenges from AfD and Left Party, allowing the outgoing Bundestag to proceed with the vote on Tuesday.
Investments will target defense, cybersecurity, civil protection, and support for nations facing aggression, alongside infrastructure modernization.
The agreement ensures that funds are used for new projects rather than reallocating existing budgetary commitments.
The Bundestag and Bundesrat must both secure a two-thirds majority to finalize the constitutional amendment.