Germany Plans Major Debt-Financed Investments as Trust in US Declines

Proposed €500 billion fund for infrastructure and defense faces political and legal challenges, reflecting shifting alliances and public sentiment.

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.