(de-news.net) – The CDU/CSU and SPD have agreed on a multi-billion-euro financial package during coalition talks, as announced by party leaders Friedrich Merz (CDU), Markus Söder (CSU), Lars Klingbeil and Saskia Esken (both SPD) in Berlin. The plan includes exempting defense expenditures exceeding 1 percent of GDP from the debt brake and establishing a 500-billion-euros special fund for economic and infrastructure development over the next decade, with 100 billion euros allocated to federal states.

Merz emphasized the package’s significance for national security and defense as well as economic strength and private investment, while Klingbeil highlighted its role in addressing Germany’s investment backlog and advocated for revising the debt brake by 2025. Söder, on his part, underscored Germany’s commitment to security and international alliances.

The proposed constitutional amendment aims to exclude defense expenditures exceeding 1 percent of GDP from the debt brake, enabling high borrowing. The infrastructure fund, on the other hand, equivalent to over 10 percent of Germany’s GDP, is planned for projects such as transport, energy, and healthcare. It is supposed to be financed through capital market loans and exempt from debt rules.

Parliamentary approval, requiring a two-thirds majority, is expected next week, with negotiations focusing on securing Green Party support. Support from the FDP is more unlikely.