On Tuesday, the German parliament approved a landmark plan that would change the nation’s constitutionally mandated budgetary regulations and allow the state to borrow at a record amount for infrastructure and defense.
With 513 votes in favor, more than 489, the vote passed the parliament. To become law, the bill must still receive a two-thirds majority in the Bundesrat, Germany’s upper chamber that represents the nation’s states.
The pivotal vote in the Bundestag came after weeks of discussion triggered by plans to lift Germany’s constitutionally guaranteed “debt brake” in order to unleash hundreds of billions of dollars in expenditure by Merz’s Christian Democratic Union (CDU) and potential coalition allies, the Social Democrats (SPD).
Merz had to fight to approve the idea before the new parliament met on March 25. The far-right Alternative for Germany (AfD) and far-left Die Linke might veto the package.
Until Merz promised the party last week that €100 billion of the special fund would be used to promote climate economic transformation measures, the Greens were first hesitant to accept the bill.Decades of budgetary restraint are ending with this historic agreement. According to the 2009 constitution, Germany’s “debt brake” is essentially not applicable to defense expenditures over 1% of GDP because of the recommendations.
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