An announcement regarding the possibility of a change in the debt brake comes as Germany’s Bundesbank on Tuesday proposed to raise its annual net borrowing cap to 1.4% of GDP (from the current 0.35%), creating around 2200 billion euros in additional spending rooms by the end of the decade.
Conservatives and SPD leaders have announced that they have proposed a special fund of 500 billion euros to fund infrastructure projects other than normal budget spending over the next decade.
Still, no passages are guaranteed. Mertz requires a two-thirds of Congress to partially exempt defence spending from constitutional fiscal constraints and pass a special fund for infrastructure.
While Meltz and the SPD were under pressure to act quickly given the rapid degradation of the Trans-Atlantic NATO Alliance, it is to encourage a potential move that will allow Germany’s newly elected Department of Defense to register on March 25, as the German (AFD) party and the left’s extreme, Russian-friendly alternatives to oppose the potential left wing against military spending.
For this reason, the Conservatives and the SPD intend to submit proposals for votes in the current Congress.
However, green support will be required to get the required majority. However, many green politicians have already proposed that greater spending could oppose the proposal, unless it involves more fundamental and immediate reforms in Germany’s debt brakes, to stimulate the economy and promote a clean energy transition.
