Overview

• Friedrich Merz, Germany's incoming chancellor, reached a deal with the Green Party to lift their veto on a €500 billion investment plan.
• The plan allocates €100 billion specifically for climate-related projects, addressing Green Party demands for environmental safeguards.
• The agreement allows constitutional changes to bypass Germany's debt brake for defense and infrastructure spending.
• The Bundestag will vote on the plan next week, with the required two-thirds majority now secured thanks to Green Party support.
• The initiative marks a significant shift in Germany's fiscal policy, prioritizing military rearmament and modernization in response to evolving European security challenges.