Germany has ditched decades of fiscal restraint with a massive €500 billion spending plan, aiming to revive growth and bolster defence. With geopolitical tensions rising, Friedrich Merz calls it a "historic shift"—but critics warn of debt risks.
Germany’s parliament has approved a sweeping spending surge, marking a major shift from decades of fiscal restraint. Conservative leader Friedrich Merz secured support for the plan, which aims to boost economic growth and strengthen Europe’s defence amid rising geopolitical tensions.
The approved package includes a €500 billion fund for infrastructure and eases borrowing rules to expand defence spending. The move is a response to increasing concerns over European security, particularly regarding Russia and potential shifts in U.S. foreign policy. "We have for at least a decade felt a false sense of security," Merz told lawmakers, calling the decision a crucial step toward a new European defence strategy.
The Bundestag’s approval was decisive, with 513 votes in favour and 207 against. The legislation is expected to pass the Bundesrat on Friday. The markets reacted positively, with the euro and European shares rising in anticipation of the fiscal expansion.
While supporters hail the move as a turning point, critics warn of long-term risks, including rising debt and the need for structural reforms to ensure sustainable growth. Economists argue that cutting bureaucracy and increasing efficiency will be essential to making the most of Germany’s fiscal shift.
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Britain's King Charles has called on the world to work toward lasting peace and preventing future wars during a speech marking the end of four days of events celebrating the 80th anniversary of Victory in Europe (VE) Day.
Before becoming Pope Leo XIV, Cardinal Robert Prevost shared rare insights on faith, unity, and modern challenges in a few candid interviews.
A humanitarian ship carrying 20,000 tons of Ukrainian wheat docked in Samsun, Türkiye, on Thursday, marking a major World Food Program initiative to supply crisis-hit regions, including Syria.
North Korea’s leader Kim Jong Un supervised a missile test on Thursday, emphasizing the nation's nuclear combat readiness, according to state media KCNA.
EU foreign ministers will visit Lviv, Ukraine, on May 9 to discuss defense support and endorse plans for a tribunal on war crimes and aggression.
Britain's King Charles has called on the world to work toward lasting peace and preventing future wars during a speech marking the end of four days of events celebrating the 80th anniversary of Victory in Europe (VE) Day.
Before becoming Pope Leo XIV, Cardinal Robert Prevost shared rare insights on faith, unity, and modern challenges in a few candid interviews.
A humanitarian ship carrying 20,000 tons of Ukrainian wheat docked in Samsun, Türkiye, on Thursday, marking a major World Food Program initiative to supply crisis-hit regions, including Syria.
North Korea’s leader Kim Jong Un supervised a missile test on Thursday, emphasizing the nation's nuclear combat readiness, according to state media KCNA.
EU foreign ministers will visit Lviv, Ukraine, on May 9 to discuss defense support and endorse plans for a tribunal on war crimes and aggression.
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