Germany's Bundesrat Approves Historic €500 Billion Financial Package
The package introduces constitutional changes to relax the debt brake, enabling investments in defense, infrastructure, and climate protection.
- The Bundesrat approved the financial package with 53 out of 69 votes, surpassing the required two-thirds majority.
- Key provisions include a €500 billion fund, with €100 billion allocated to states for infrastructure and climate projects.
- The constitutional debt brake will be relaxed for defense and cybersecurity spending exceeding 1% of GDP.
- The package also allows states to take on new debt up to 0.35% of GDP annually, increasing fiscal flexibility.
- Legal challenges by the AfD to block the package were rejected by the Federal Constitutional Court.
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