(de-news.net) – The Bundesrat has ratified constitutional amendments addressing debt limitations and the establishment of a dedicated infrastructure fund. These amendments, integral to a debt package previously endorsed by the Bundestag, necessitated a two-thirds majority in the Bundesrat, which was secured with 53 votes from 12 states. Brandenburg, Rhineland-Palatinate, Saxony-Anhalt, and Thuringia abstained from the proceedings. The constitutional revisions introduce partial relaxations to the debt brake, exempting expenditures on defense, civil protection, and intelligence services beyond a specified threshold. Previously confined to natural disasters and extraordinary emergencies, these exemptions now encompass military aid to states under attack.
Expenditures amounting to 1 percent of nominal GDP must remain budget-financed, while amounts exceeding this threshold may be funded through new debt. Furthermore, German states are now permitted to collectively incur debt up to 0.35 percent of GDP, thereby alleviating prior zero-debt constraints. The amendments also establish a 500-billion-euro special fund over a 12-year period, earmarked for infrastructure development and achieving climate neutrality by 2045. This fund, which operates independently of debt calculations, allocates 100 billion euros each to state-level infrastructure initiatives and the Climate and Transformation Fund.
Mecklenburg-Vorpommern’s Minister-President Schwesig underscored the imperative for expeditious and pragmatic investments in critical sectors such as transportation, healthcare, and education. What is more, the altered geopolitical landscape in Europe, shaped by the ongoing conflict in Ukraine and uncertainties in U.S. foreign policy, was cited as necessitating enhanced national defense and alliance capabilities. Modern infrastructure was identified as a cornerstone for bolstering defense, economic competitiveness, and growth. Baden-Württemberg’s Minister-President Kretschmann, despite expressing reservations, endorsed the amendments, citing pressing global security concerns. Bremen’s Mayor Bovenschulte cautioned against depleting fiscal flexibility through tax reliefs, while Bavaria’s Minister-President Söder characterized the package as a “protective shield” and a “German Marshall Plan,” emphasizing the necessity of targeted expenditures.
Negotiations, particularly with Bavaria, were pivotal in achieving consensus, as initial resistance from the Free Voters had delayed progress. Saxony’s Minister-President Kretschmer advocated for structural reforms to optimize the effective deployment of allocated funds.
The attainment of a two-thirds majority in the Bundesrat was initially uncertain, given the divergent stances among coalition governments comprising parties such as the Left, FDP, Free Voters, and BSW. Thuringia’s Minister-President Vogt abstained, citing intra-coalition disagreements. Bavaria’s Free Voters, initially opposed, ultimately endorsed the package to avert coalition instability. The CDU, CSU, and SPD, during coalition negotiations, incorporated amendments proposed by the Greens. Legal challenges by the AfD and FDP to obstruct the Bundesrat’s approval were dismissed by the courts.
