Union and SPD Explore New Multi-Billion-Euro Funds for Defense and Infrastructure

Negotiations between CDU/CSU and SPD focus on creating special budgets to address defense and infrastructure needs before the new Bundestag convenes.

Union and SPD are discussing the establishment of two special funds totaling up to €900 billion—€400 billion for the Bundeswehr and €500 billion for infrastructure improvements.
The urgency of these talks is driven by the need to address heightened defense requirements following international tensions, including developments in the Ukraine conflict.
Both parties aim to finalize agreements on these funds before the new Bundestag convenes, avoiding potential vetoes by opposition parties with new parliamentary dynamics.
Calls for a structural reform of Germany’s debt brake have emerged, with critics arguing that temporary special budgets are insufficient for long-term financial stability.
The SPD and CDU/CSU are under pressure to form a coalition quickly, with both sides emphasizing the importance of a stable government to address pressing domestic and international challenges.