Germany's election-winning conservative CDU/CSU bloc, led by Friedrich Merz, and the Social Democrats (SPD) have reached an agreement in principle with the Greens on a significant increase in state borrowing ahead of next week’s parliamentary vote.
The debt reform plan, proposed by the conservatives and the SPD, aims to exempt defense spending from Germany's constitutional debt brake and establish a €500 billion ($545 billion) fund for infrastructure investment.
The compromise also allocates €100 billion to the climate and economic transformation fund.
With backing from the Greens, Merz is expected to secure the two-thirds parliamentary majority needed for the constitutional amendments in next week’s vote.
"Germany is back," said Merz, announcing the agreement on debt reform.
"It is a clear message to our partners and friends, but also to our opponents, to the enemies of our freedom: we are capable of defending ourselves and we are now fully prepared to defend ourselves," he said.
Merz also said he expects the country to release €3 billion ($3.27 billion) in military aid to Ukraine once the upper house passes the debt reform.
"There will be no shortage of financial resources to defend freedom and peace on our continent," Merz stressed. "Germany is making its major contribution to the defense of freedom and peace in Europe."
Merz, whose conservative bloc is negotiating with the SPD to form a new government after last month’s elections, aims to secure the funds before the new parliament convenes on March 25. After that date, the CDU/CSU’s alliance with the SPD and Greens would no longer hold the majority needed to pass the measure.
Social Democrat co-leader Lars Klingbeil said a major government borrowing and investment push was a "powerful boost" for Europe's largest economy.
"We have laid the foundation for Germany to get back on its feet and protect itself," Klingbeil said after his SPD agreed with conservatives and Greens on the historic debt package.
Green parliamentary group leader Katharina Dröge said the €100 billion, which must be spent on new measures rather than to fill budgetary holes, "will make a difference" as the money would be "channelled in the right direction." Though the Green will not be part of the next government, she said negotiations to reach Friday's compromise would allow ministers in the future government to "do the right thing."
Israeli forces have maintained a tight closure on Hebron in the occupied West Bank for a second day, with Palestinian media reporting home raids, m...
Around 11,000 people joined a demonstration in Orléans on Saturday against the National Rally congress, according to the local prefecture....
German police have detained a suspect after a major fire broke out at the historic Kehlsteinhaus, known as the “Eagle’s Nest&rdqu...
Israeli military bulldozers have begun demolishing buildings in the West Bank city of Hebron on Friday, 23 October, following armed clashes with Palestinians that left two Israeli soldiers dead, according to the Israeli military.
Around 11,000 people joined a demonstration in Orléans on Saturday against the National Rally congress, according to the local prefecture.
Typhoon Champi swept past Taiwan on Saturday, leaving one person dead and more than 500 injured as strong winds and torrential rain brought down trees, cut power and disrupted transport across the island.
A powerful magnitude 7 earthquake has struck Tibet in southwestern China, killing 16 people and injuring 65, while forcing more than 12,000 residents to relocate as rescue teams respond to widespread aftershocks.
French President Emmanuel Macron on Friday described a deadly shooting in the towns of Trappes and La Verrière, west of Paris, as a racist attack and ‘a turning point’ for the country.
Azerbaijan's economy is forecast to grow by 1.7 per cent in 2026 and 2.3 per cent in 2027, according to the International Monetary Fund (IMF), while growth across the wider Caucasus and Central Asia region is expected to slow.
As fuel prices surge nearly 37 per cent and protests over living costs turn violent, French President Emmanuel Macron is seeking fresh energy supplies and partnerships in the Gulf. But can diplomacy abroad ease mounting pressure at home?
Azerbaijan and Georgia are targeting more than $2 billion in bilateral trade as the neighbouring countries strengthen energy partnerships, expand transport links and pursue new investment opportunities.
More than 200 U.S. business leaders have joined Secretary of State Marco Rubio in Uzbekistan as Washington steps up efforts to turn closer diplomatic ties with Central Asia into trade and investment deals.
Thirty-five years after restoring independence, Azerbaijan's economy has more than tripled in real terms. Official data reveal how investment, manufacturing, private enterprise and digital development have reshaped the country's economic landscape.
You can download the AnewZ application from Play Store and the App Store.
What is your opinion on this topic?
Leave the first comment