BERLIN – Germany's state parliament, the Bundesrat, has approved a major debt-financed investment package that is set to unlock hundreds of billions of euros for Germany's defense and broader infrastructure.
The package proposed by the likely next coalition government of Friedrich Merz's Christian Democrats and the Social Democrats included a partial exemption of defence spending from Germany's strict debt rules and a special €500 billion debt-financed fund for infrastructure spending.
Germany's elected chamber, the Bundestag, had already voted in favour of the deal, thanks to support from the Green Party. But the Bundesrat, whose delegates represent Germany's states, also had to confirm the decision by a two-thirds majority because it would involve changes to the constitution.
At Friday's Bundesrat meeting, 53 of 69 delegates supported the deal, seven more than the required number.
The final green light came as a relief to Germany's likely next chancellor, Merz, who had rushed the package of bills through the outgoing Bundestag because an unfavorable majority in the newly elected assembly would have made it difficult to change the constitution.
The new budget reserve gives Merz's future coalition the opportunity to tackle pressing issues such as ensuring the future of Germany's defence architecture.
There had been concerns previously about whether the package would be adopted, as the state governments, which were made up exclusively of parties supporting the deal, had only 41 votes. If coalitions of state governments disagree within their positions, the relevant delegates must traditionally abstain in the Bundesrat.
However, the assembly's support became virtually guaranteed after the Bavarian government's parties, including the CDU's allied Christian Social Union (CSU) and the liberal-conservative Free Voters party, reached an agreement to back the deal.
Notably, two regions whose governments include the socialist Left Party also voted in favour.
The vote that will determine the fate of Chancellor Friedrich Merz
Friedrich Merz's debt-financed investment package still faces uncertainties that could sink the legislation and doom his chancellorship.
[OM]
Source: Source
