Overview

• Friedrich Merz, Germany's likely next chancellor, is pushing for constitutional amendments to loosen borrowing limits and create a €500 billion infrastructure fund.
• The proposals aim to exempt defense spending from Germany's debt brake and address economic stagnation and growing security concerns in Europe.
• The Greens, whose support is crucial for the required two-thirds parliamentary majority, have rejected the plan in its current form, demanding greater focus on climate and social investments.
• Negotiations between Merz's CDU/CSU bloc, the SPD, and the Greens are ongoing, with some optimism expressed by leaders about reaching a compromise before the March 18 vote.
• Failure to pass the amendments in the current parliament could make future approval more difficult, as the newly elected Bundestag includes stronger opposition from far-right and left-wing parties.