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Germany's Coalition Debates Major Financial Reform and Constitutional Changes

Union, SPD, and Greens face challenges in reaching consensus on a €500 billion financial package and Schuldenbremse reform.

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Overview

  • The proposed financial package includes €500 billion for defense and infrastructure, requiring a constitutional amendment to bypass the Schuldenbremse (debt brake).
  • The Greens have expressed significant concerns, demanding stronger commitments to climate protection and investment guarantees.
  • Union and SPD aim to use the package to fund defense upgrades, infrastructure projects, and election promises like expanded pensions and tax cuts.
  • Critics, including Fridays for Future and civil society groups, argue the plan lacks sufficient focus on long-term sustainability and social equity.
  • Discussions continue as coalition parties seek compromise, with a Bundestag vote on the constitutional changes scheduled for March 18.