US EditionGerman parties agree on historic debt overhaul to revamp military and economy
- Germany's next government partners plan to relax debt rules to increase defense spending due to growing concerns about U.S. Support for European allies.
- They aim to create a €500 billion fund to improve Germany's infrastructure over the next decade.
- Friedrich Merz proposed exempting defense spending over 1% of GDP from borrowing limits.
- SPD leader Klingbeil stated that the constitutional debt brake will be revised to avoid hindering investment by the year-end.
203 Articles
203 Articles
Chancellor-elect Merz’s public spending deal sees German borrowing costs soar highest since 1997
The surge followed an agreement led by Chancellor-in-waiting Friedrich Merz that would largely exempt defence spending from Germany’s strict debt limits and create a €500 billion ($540 billion) special fund for infrastructure over the next decade
The conservative German leader of the CDU, Friedrich Merz, has come forward to become the next chancellor, seems determined to reform the rules limiting the use of the deficit and to create a special fund of 500 billion dedicated to industrial and infrastructure investments to get the first European power out of the recession. This is expected to benefit many French values such as Vinci, Eiffage, Spie and also Alstom.
The taboo of indebtedness is ending. And even China is making more use of loans to grow
Germany to Overhaul Fiscal Rules, Unleashing Billions for Defense and Infrastructure
Friedrich Merz, Germany’s incoming chancellor, announced a historic fiscal reform that will exempt defense spending above 1% of GDP from the country’s stringent “debt brake.” This move, agreed upon by Merz’s Christian Democratic Union (CDU), its Bavarian sister party (CSU), and the Social Democrats (SPD), aims to modernize Germany’s military and revitalize its stagnating economy. […]
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