Billion-dollar agreement: Union and SPD on the way to a new government!

Billion-dollar agreement: Union and SPD on the way to a new government!

In the exploratory talks to form a new German federal government, the Union and the SPD agreed on a billion-dollar financing package. Union Chancellor candidate Friedrich Merz reported this yesterday evening. A central point of this agreement is that all defense spending above one percent of gross domestic product will be exempt from the restrictions of the debt brake. In addition, a new special fund of 500 billion euros will be created for infrastructure spending for the next ten years. According to information from oe24, the corresponding proposals to change the Basic Law should be submitted to the Bundestag next week.

However, the negotiations are not yet complete. As already reported by BR24, the talks are expected to continue throughout the day. Another main issue is the financing of additional aid for Ukraine, which, according to Merz, should be clarified by the upcoming EU summit. Both Merz and SPD leader Lars Klingbeil emphasized the need for financial clarity, not only with regard to aid to Ukraine, but also for infrastructure projects, social issues and economic competitiveness. Two separate special funds worth three-digit billions are also being discussed, which are earmarked for the areas of defense and infrastructure.