German Coalition Approves Massive Debt Package for Defense, Climate, and Infrastructure

Germany's coalition parties, including the CDU/CSU, SPD, and Greens, have formalized a draft law to significantly increase national debt. The parliamentary budget committee will deliberate on the proposal on Sunday, with a Bundestag vote scheduled for Tuesday to potentially ease debt brake regulations. The plan includes suspending the debt brake for defense and security expenditures exceeding 45 billion euros, covering the Bundeswehr, Ukraine aid, intelligence services, civil protection, and IT security. This allows for unlimited additional borrowing. A special fund of 500 billion euros will be established for investments, with 100 billion euros earmarked for climate initiatives. The FDP has criticized the plan, suggesting that only a fraction of the funds will go to genuine additional investments, while the rest may be used for existing projects and other spending priorities.