Merz and SPD Agree on Debt Expansion, Seek Green Support for Coalition

The CDU and SPD finalize a deal on defense and infrastructure spending but face hurdles in securing Green Party backing for constitutional changes.

CDU leader Friedrich Merz and SPD have reached a preliminary agreement to form a coalition, including plans to loosen Germany's debt brake for defense and infrastructure funding.
The proposed measures include a massive investment in military capabilities and a new fund for infrastructure projects such as schools, roads, and digitalization.
The coalition requires constitutional amendments, making Green Party support essential, but the Greens criticize the plans for lacking structural reforms and adequate climate commitments.
Internal dissent persists within both the CDU and SPD, with some members calling for further concessions on social and migration policies.
Merz aims to finalize the coalition by Easter, but unresolved issues and Green Party demands could delay progress.