The conservative German union parties CDU/CSU and the social democratic party SPD have agreed, together with the Greens, on a debt deal. This was confirmed by CDU leader Friedrich Merz, who is very likely to become Germany's next chancellor, according to the news agency Reuters.
- Germany is back, says Friedrich Merz according to Reuters and continues:
- This is a clear message to our enemies that we are ready to defend peace on our continent.
The parties have agreed to implement a drastic change to the country's debt rules to enable an increase in defense and security spending. In addition, they have agreed on a fund of 500 billion euros, equivalent to approximately DKK 3,729 - to be used for infrastructure investments over the next 12 years, it says. The agreement exempts defense spending from the country's constitutionally protected debt limit when it exceeds one percent of GDP, writes Reuters.
Lars Klingbeil, who leads the SPD group in the German parliament, believes that the new debt agreement is "a major boost" for Europe's largest economy.
- We have laid the foundation for Germany to get back on its feet and protect itself, says Lars Klingbeil, according to Reuters.
A two-thirds majority is needed in Germany's parliament to ease the so-called debt brake.
The Bundestag is expected to vote on the issue on Tuesday. To get it passed, the CDU and SPD need votes from the Greens. As late as Monday, the Greens rejected the idea that the party could agree to ease the debt brake on the terms that the parties in the possible future federal government had proposed.
The debt package presented on Friday will include climate measures worth 100 billion euros, around 745 billion Merz wants the issue to be voted on before the new parliament takes office on March 25. Many new parliamentarians from the far right were elected in last month's elections, and Merz fears they could block the adoption.
jel /ritzau/
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