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Home / World / German Parliament Approves Historic Debt Rule Easing

German Parliament Approves Historic Debt Rule Easing

German Parliament Approves Historic Debt Rule Easing
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World March 18, 2025 16:56

berlin, germany - German Bundestag agrees on additional investments, loosening debt rule, and defense spending boost in landmark decision.

Bundestag Approval for Bill

The German parliament, the Bundestag, has approved hundreds of billions in extra investments, primarily in defense and infrastructure, partially relaxing the debt rule.

Cross-Party Alliance

  • CDU/CSU, SPD, and Greens formed a coalition for a two-thirds majority needed to amend the constitution.

Special Fund and Changes

  • A special fund of 500 billion euros for infrastructure and climate investments, with states allowed limited budget deficits and eased borrowing rules for defense.

Rapid Decision Required

  • Urgency due to the upcoming new parliament and potential lack of support post-election.

Further Approval Needed

  • Plan to be reviewed by the Bundesrat, representing the federal states, on Friday.
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