Photo: EPA/UPG
Berlin – Christian Democratic Union leader and chancellor candidate Friedrich Merz has reached a key agreement with the Greens, paving the way for a massive financial plan. The plan includes up to €1 trillion in defence and infrastructure spending, Politico reports.
Merz had previously struck a deal with the Social Democratic Party that included the exclusion of defence spending from the constitutional debt ceiling and €500 billion for infrastructure projects outside the standard budget.
However, the support of the Greens was needed to pass these bills in parliament. This obstacle has now been overcome: the party agreed after receiving guarantees that funding for environmental initiatives would be maintained.
The deal marks a departure from decades of austerity in Germany. It will unlock huge investments in the country’s defence and economy, which is especially important amid geopolitical tensions.
The Bundestag is expected to vote on these measures on Tuesday.
