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.

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.