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.
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Ukrainian President Volodymyr Zelenskyy revealed that a 3,000-kilometer-range drone successfully passed testing. He also expressed satisfaction with the strike results of Ukrainian missiles, particularly the long-range Neptune.
French police evicted hundreds of migrants from the Gaite Lyrique cultural center in Paris on March 18, 2025, sparking protests and highlighting ongoing challenges faced by asylum seekers in the country.
Ukrainian President Volodymyr Zelenskyy held a telephone conversation with French President Emmanuel Macron to coordinate positions ahead of the upcoming conversation between US President Donald Trump and Russian President Vladimir Putin.
Paris police began a large-scale eviction of over 400 migrants from the Gaîté Lyrique theatre early Tuesday, ending their three-month occupation. Officers moved in before dawn as demonstrators gathered in protest.
The Rwanda-backed M23 armed group announced Monday that it will withdraw from peace talks scheduled for Tuesday in Angola. The rebels had planned direct negotiations with the Democratic Republic of Congo's government to resolve the conflict in the country's east.
Ukrainian President Volodymyr Zelenskyy revealed that a 3,000-kilometer-range drone successfully passed testing. He also expressed satisfaction with the strike results of Ukrainian missiles, particularly the long-range Neptune.
French police evicted hundreds of migrants from the Gaite Lyrique cultural center in Paris on March 18, 2025, sparking protests and highlighting ongoing challenges faced by asylum seekers in the country.
Ukrainian President Volodymyr Zelenskyy held a telephone conversation with French President Emmanuel Macron to coordinate positions ahead of the upcoming conversation between US President Donald Trump and Russian President Vladimir Putin.
Paris police began a large-scale eviction of over 400 migrants from the Gaîté Lyrique theatre early Tuesday, ending their three-month occupation. Officers moved in before dawn as demonstrators gathered in protest.
The Rwanda-backed M23 armed group announced Monday that it will withdraw from peace talks scheduled for Tuesday in Angola. The rebels had planned direct negotiations with the Democratic Republic of Congo's government to resolve the conflict in the country's east.
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