Overview

• Hamburg's SPD and Greens have officially introduced a proposal to amend the state constitution, enabling the city to utilize expanded borrowing powers under Germany's reformed debt brake policy.
• The amendment would allow Hamburg to access funding from the federal €500 billion investment package for infrastructure, defense, and climate projects.
• The proposed changes aim to ensure legal clarity and fiscal security while maintaining the debt brake's core principle of balanced budgets with borrowing allowed only under strict conditions.
• The constitutional amendment requires a two-thirds majority in Hamburg's Bürgerschaft, making CDU support essential for its passage.
• Critics, including the AfD, continue to oppose the reforms, arguing that increased borrowing undermines financial responsibility and future generations' interests.