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Germany's €500 Billion Financial Package Faces Pivotal Bundestag Vote

The proposed constitutional amendments aim to fund infrastructure, climate neutrality, and defense, but dissent and legal challenges pose risks to its passage.

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Nicht Söder und Aiwanger, sondern zwei Floriane traten nach dem Treffen des Koalitionsausschusses von CSU und Freien Wählern vor die Kameras: Herrmann (l, CSU) und Streibl (FW)
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Overview

  • The Bundestag is set to vote on March 18, 2025, on a €500 billion financial package requiring a two-thirds majority to amend the constitution.
  • The package allocates €100 billion for climate measures and €100 billion for state-level investments, with provisions for increased borrowing flexibility.
  • Bavaria has confirmed its support in the Bundesrat after internal negotiations, resolving a major uncertainty for the package's passage.
  • Constitutional complaints and dissent from some MPs, including CDU's Mario Czaja, highlight concerns over fiscal responsibility and generational fairness.
  • The financial package is seen as a critical test for the emerging CDU-SPD coalition government's ability to govern effectively.