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Germany Approves Constitutional Amendment for €500 Billion Investment Fund

The Bundespräsident's signature finalizes the legislation enabling unprecedented borrowing for defense and infrastructure upgrades.

  • The Bundesrat approved the constitutional amendment with 53 out of 69 votes, surpassing the required two-thirds majority.
  • The legislation allows borrowing exceeding 1% of GDP for defense, cybersecurity, and civil protection, alongside a €500 billion infrastructure fund.
  • €100 billion of the fund will be allocated to states, with another €100 billion dedicated to climate protection and green economic transformation.
  • Critics raise concerns over the absence of a clear debt repayment plan and potential long-term financial burdens.
  • The financial package is framed as a response to global security challenges and decades of underinvestment in Germany's infrastructure.
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