Germany’s constitutional court has rejected last-minute legal challenges to a €500 billion ($546 billion) infrastructure fund proposed by conservative leader Friedrich Merz.
The ruling clears the way for parliament to vote on Tuesday, as Merz seeks to push the initiative through before an influx of far-right and far-left lawmakers complicates its approval.
The court dismissed appeals from the far-right Alternative for Germany (AfD), the pro-business Free Democrats (FDP), the far-left Left party, and the Sahra Wagenknecht Alliance, who had argued that the outgoing Bundestag should not decide on such a major borrowing package. In a statement, the court said it saw no grounds to block the special parliamentary session scheduled for March 18.
Merz, who won Germany’s recent elections, has made the fund a central part of his economic strategy. The plan involves temporarily easing constitutional debt rules to finance large-scale infrastructure and defence projects. He has warned that delays could harm Germany’s ability to respond to growing security threats, citing an increasingly hostile Russia and shifting U.S. policies under President Donald Trump.
Merz has secured the backing of the Greens, alongside his conservative bloc and the Social Democrats (SPD), to ensure the package has the two-thirds majority needed to pass constitutional amendments. However, the margin is slim, with only 30 votes to spare, leaving little room for defections.
On Monday, Merz and the leaders of the SPD and Greens expressed confidence that the measures would pass, after the parliamentary budget committee gave its approval on Sunday.
The urgency of the plan is underscored by fresh economic warnings. The Munich-based Ifo Institute predicted Germany’s economy would expand by just 0.2% this year after two consecutive years of contraction, citing weak industrial demand and poor consumer confidence.
“The German economy is stuck,” said Timo Wollmershaeuser, head of Ifo’s economic forecasts. Despite improved purchasing power, he noted that businesses remain hesitant to invest.
A survey by the German Chamber of Industry and Commerce (DIHK) found that 40% of German companies were planning to move investments abroad to cut costs.
“Germany is in danger of falling behind,” warned Volker Treier, the DIHK’s head of foreign trade. He pointed to high energy costs, excessive bureaucracy, and rising taxes as factors driving companies overseas.
Meanwhile, the Organisation for Economic Co-operation and Development (OECD) downgraded Germany’s 2025 growth forecast from 0.7% to 0.4%. The economy ministry echoed concerns over domestic and foreign policy uncertainty but suggested that Merz’s borrowing plan could help stabilise the economy.
Russia’s defense ministry has accused Ukraine of carrying out four separate attacks on its energy facilities within a 24-hour period, alleging violations of a U.S.-brokered moratorium aimed at preventing strikes on each other’s critical energy infrastructure.
Sporting legends, rising stars, and international guests gathered in Madrid for the 24th Laureus World Sports Awards, where the global sporting community came together to celebrate a year of exceptional achievements, inspiring moments, and the unifying power of sport.
South Korea’s former President Yoon Suk Yeol, who was ousted from office, appeared at the Seoul Central District Court on Tuesday to attend the second hearing in his ongoing criminal trial, where he faces serious charges of insurrection.
A U.S. airstrike on Yemen’s Ras Isa oil port has killed at least 74 people and injured 171 others, marking the deadliest known attack in President Trump’s renewed campaign against Houthi rebels and raising alarm over the widening scope of the conflict.
Iranian Foreign Minister Abbas Araqchi has signaled that a nuclear agreement with the United States remains within reach, provided Washington adopts a realistic and constructive approach ahead of the second round of negotiations with the Trump administration.
A mob attack on an Ahmadi place of worship in Karachi has left one man dead, highlighting ongoing persecution of the minority group.
A Russian court has sentenced 19-year-old Darya Kozyreva to nearly three years in prison for protesting the war in Ukraine using poetry and graffiti.
The new U.S. ambassador to Japan has called for closer military coordination with Tokyo, framing the alliance as crucial amid rising regional tensions and ongoing trade disputes.
Students in Serbia have rallied outside a police station as Belgrade University’s rector is questioned over support for anti-government protests.
OpenAI has unveiled a new option called Flex processing, an API service designed to provide more affordable AI model usage in exchange for slower response times and occasional resource unavailability.
The Russian ruble has emerged as the top-performing currency globally in 2025, registering an impressive 38% appreciation against the US dollar since the beginning of the year, according to a report by Bloomberg.
A small plane crashed near Kopake, New York, on April 13, killing at 6 people. The Mitsubishi MU-2B aircraft, carrying six people, went down under unclear circumstances. This marks the second aviation accident in New York in a week, raising safety concerns.
Several regions in Ukraine faced heightened alert on Palm Sunday, as reports of explosions and missile threats drew public attention and official responses.
Severe rainfall on April 17 led to flooding and landslides in the Piedmont region, prompting a large-scale emergency response from over 400 firefighters.
Start your day informed with AnewZ Morning Brief: here are the top news stories for April 16th, covering the latest developments you need to know.
A mob attack on an Ahmadi place of worship in Karachi has left one man dead, highlighting ongoing persecution of the minority group.
A Russian court has sentenced 19-year-old Darya Kozyreva to nearly three years in prison for protesting the war in Ukraine using poetry and graffiti.
The new U.S. ambassador to Japan has called for closer military coordination with Tokyo, framing the alliance as crucial amid rising regional tensions and ongoing trade disputes.
Students in Serbia have rallied outside a police station as Belgrade University’s rector is questioned over support for anti-government protests.
Russian Foreign Minister Sergey Lavrov extended Moscow’s support for the ongoing indirect nuclear talks between the United States and Iran, offering to mediate or assist in any way that would be beneficial to Tehran and acceptable to Washington.
A mob attack on an Ahmadi place of worship in Karachi has left one man dead, highlighting ongoing persecution of the minority group.
A Russian court has sentenced 19-year-old Darya Kozyreva to nearly three years in prison for protesting the war in Ukraine using poetry and graffiti.
The new U.S. ambassador to Japan has called for closer military coordination with Tokyo, framing the alliance as crucial amid rising regional tensions and ongoing trade disputes.
Students in Serbia have rallied outside a police station as Belgrade University’s rector is questioned over support for anti-government protests.
OpenAI has unveiled a new option called Flex processing, an API service designed to provide more affordable AI model usage in exchange for slower response times and occasional resource unavailability.
You can download the AnewZ application from Play Store and the App Store.
What is your opinion on this topic?
Leave the first comment