Overview

• Germany's likely next government, led by CDU's Friedrich Merz and the SPD, plans to create a €500 billion special fund for infrastructure and defense, requiring a relaxation of constitutional debt limits.
• The far-right AfD party and the Left party are preparing legal challenges against the proposed measures, citing concerns about democratic legitimacy and fiscal responsibility.
• Public opinion in Germany supports increased investments in defense and infrastructure, but trust in the United States as a reliable partner has significantly eroded under President Donald Trump's renewed leadership.
• The Bundestag must secure a two-thirds majority to pass the debt-financed measures before the new parliament convenes later this month, with key votes from smaller parties still uncertain.
• The proposed fiscal overhaul comes as Germany grapples with concerns over European security, NATO reliance, and the need for greater European military independence.