Germany Awaits Bundesrat Decision on Historic Fiscal Reform

The proposed plan would exempt defense spending from the constitutional debt brake, unlocking billions for military, infrastructure, and climate initiatives.

Germany's Bundesrat is set to vote today on a landmark reform to exempt defense spending from the constitutional 'debt brake.'
The reform package includes €500 billion for infrastructure upgrades and €100 billion for climate investments, securing Green Party support.
The plan addresses decades of military underfunding, with German army leaders emphasizing the need for readiness in the face of potential future conflicts.
Key geopolitical factors, including the war in Ukraine and concerns about Russian aggression, have driven the urgency of the reform.
Bavaria's coalition dynamics could prove decisive, as its bloc vote may determine whether the measure secures the necessary two-thirds majority.