(de-news.net) – The CDU/CSU and SPD have reached an agreement with the Green Party on a financial package involving significant expenditures on defense and infrastructure. CDU leader Friedrich Merz outlined the agreement, which includes 100 billion euros from a special fund for infrastructure, aimed at projects like municipal energy and heat planning, and another 100 billion euros for the Climate and Transformation Fund. These investments are designated for additional projects, addressing a demand from the Greens. They had previously criticized the CDU/CSU and SPD for potentially using new debt to finance electoral promises.
The package consists of three main components. The first involves exempting defense expenditures exceeding one percent of GDP from the debt brake. The second grants states increased flexibility in borrowing. The states are allocated 100 billion euros from the special fund. These are also tasked with financing municipal heat planning. The third component, a special fund for infrastructure, was a significant point of contention with the Greens. Merz confirmed that this fund is restricted to “additional investments” and can only be accessed if ten percent of the federal budget is already allocated to investments. Furthermore, it is designed to support projects advancing climate neutrality.
An additional 100 billion euros is designated for the Climate and Transformation Fund (KTF), which remains integrated into the regular budget framework.
The exemption from the debt brake for defense spending will apply when investments exceed 1 percent of GDP. The definition of defense expenditures will be broadened to include civil and population protection as well as intelligence services, also aligning with the Greens’ demands.
Merz described the outcome as a strong negotiation result, emphasizing Germany’s readiness to defend freedom and peace without financial constraints and adhering to European debt rules at the same time. He described the discussions as demanding but consistently reliable and trustworthy, highlighting the constructive nature of the negotiations. SPD leader Klingbeil hailed the agreement as a “powerful boost” for the nation. He asserted that it lays the foundation for Germany’s recovery and protection.
The Bundestag’s budget committee is set to vote on the draft legislation before the parliament’s final decision next Tuesday. Constitutional amendments required for the CDU/CSU and SPD’s plans necessitate a two-thirds majority, achievable now that the Green assured their support. The Bundesrat also requires a two-thirds majority for the described amendments.
