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Germany's Bundesrat Approves Historic Debt Brake Reform

The constitutional amendment allows unprecedented borrowing for defense and infrastructure, pending the president's signature to become law.

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Jörg Kukies (SPD), Bundesminister der Finanzen

Overview

  • The Bundesrat passed the constitutional amendment with 53 votes, surpassing the required two-thirds majority of 46 votes.
  • The reform enables Germany to borrow beyond the debt brake for defense, cybersecurity, and civil protection, exceeding 1% of GDP annually.
  • A 500-billion-euro special fund for infrastructure was approved, with 100 billion euros earmarked for climate protection and green economy initiatives.
  • Abstentions from FDP and BSW-led states were noted, but they did not prevent the measure from achieving the necessary majority.
  • The amendment now awaits President Frank-Walter Steinmeier's signature to be enacted, with implementation plans for spending to follow.