Germany Nears Final Approval for Historic €500 Billion Credit Package

The Bundesrat is expected to approve the Bundestag-backed plan, which aims to address infrastructure decay, climate goals, and defense spending.

The Bundestag has approved a constitutional amendment allowing up to €500 billion in new debt for infrastructure, climate protection, and defense projects.
The Bundesrat is set to vote on the package on March 21, 2025, requiring a two-thirds majority, with approval widely anticipated.
Berlin leaders, including Mayor Kai Wegner and SPD leader Raed Saleh, are strategizing on how to allocate funds, prioritizing housing, transportation, and digitalization.
Interior Senator Iris Spranger has proposed using funds for police, fire services, and sports infrastructure, citing significant renovation backlogs.
Legal challenges to the package, including those from the FDP, have been dismissed, clearing the path for potential implementation.