Germany decides on historical debt package: Next step in the armaments turn!

Germany decides on historical debt package: Next step in the armaments turn!

Deutschland - Germany has decided with a historical decision in the Bundestag. The Bundestag voted with a clear two -thirds majority for changes in the Basic Law, which should enable massive debt admission of up to a trillion euro. These funds are intended for military expenses, the improvement of civil infrastructure and climate protection. After all, 513 MPs supported the bill, only 207 voted against it. This shows a clear turn in the budgetary policy of the country, which underlines the importance of security and infrastructure in times of geopolitical tensions, as krone.at reported.

The new law allows the federal government to accept debts above the upper limit specified so far, in particular for defense spending and additional debts from the federal states. In the future, the federal states may make up to 0.35 percent of their gross domestic product (GDP) new debts. This was considered necessary to increase the defense budget in view of the current challenges, such as the military support of Ukraine and the threat of Russia. The CDU chairman Friedrich Merz described the financial measures as indispensable for the security of Germany and Europe, so DW.com .

a step into a new era

The new regulation also provides for investments of a total of 500 billion euros for infrastructure projects to modernize Germany's dilapidated infrastructure. Of this amount, 100 billion euros for the federal states, 300 billion euros for the federal government and 100 billion euros are reserved for climate protection. The focus is thus on responsibility for a sustainable and modern infrastructure, while the conditions for debt admission are deliberately relaxed. Critics, including the FDP and various opposition parties, see this financing a dangerous overstretching of national financial policy.

It remains to be seen whether the planned changes will also find a majority in the Federal Council, which has to decide on the matter on Friday. The approval of the countries is likely after the first positive signals from Bavaria and Bremen have been received. With this decisive vote, the direction of Germany in the coming years could change significantly, especially in view of the planned massive expenses that are to be approved as part of the new debt regulation.