Germany Approves Historic €500 Billion Infrastructure and Defense Investment Plan
The agreement between CDU and SPD marks a major shift in fiscal policy, loosening debt rules to address infrastructure, defense, and economic challenges.
- Germany's CDU and SPD have agreed on a €500 billion investment package, focusing on infrastructure improvements and defense upgrades, in response to growing economic and security pressures.
- The plan includes a significant loosening of Germany's debt rules, allowing for increased borrowing to fund projects such as bridge repairs, road upgrades, and digital infrastructure expansion.
- The decision comes amid concerns over reduced U.S. support for European defense under President Donald Trump, prompting Germany to bolster its military capabilities independently.
- Critics, including members of the CDU and economists, have raised concerns about the long-term sustainability of the debt-funded approach and the potential for inefficiencies in spending.
- The agreement requires constitutional amendments, necessitating a two-thirds majority in the Bundestag, with the Greens' support being crucial for its passage.
































































































































































































































































