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Public debt agreement/ Parties in Germany reach agreement

2025-03-14 22:44:00, Kosova & Bota CNA

Public debt agreement/ Parties in Germany reach agreement

Germany's CDU and SPD parties reached a historic agreement on public debt to boost defense spending.

The agreement reached with the Greens will allow Germany to spend up to 1 trillion euros on defense and infrastructure over the next decade.

After days of intense debate, Germany's main political parties have announced a historic agreement on a spending program to unlock hundreds of billions of euros for defense and infrastructure.

The plan, proposed by the center-right Christian Democratic Union (CDU) and the center-left Social Democratic Party (SPD), would mean that defense spending above 1% of Germany's gross domestic product would be effectively exempt from the country's constitutionally-sanctioned "debt brake."

A special fund of 500 billion euros will also be created to finance infrastructure projects outside the regular budget over the next decade.

The Greens had threatened to effectively attack the deal by withdrawing their support, demanding guarantees that the extra money would be spent on infrastructure rather than diverted to fulfilling the campaign promises of the two main parties. /CNA





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