Germany Approves €500 Billion Defense Spending Package

The German parliament has approved a €500 billion defense and infrastructure package, marking a significant shift in fiscal policy by allowing increased military spending and the establishment of a special fund for infrastructure projects. The bill, which passed with a two-thirds majority in both the Bundestag and Bundesrat, aims to exempt defense spending from Germany's strict debt rules, facilitating expenditures that could reach 3% of GDP by 2027. This legislative move is a response to rising security concerns in Europe, particularly due to the ongoing conflict in Ukraine and Russia's aggressive posture. The package also allocates €100 billion for climate transformation measures, reflecting a dual focus on military capabilities and economic revitalization. Support for the bill came from a coalition of the Christian Democratic Union, Social Democrats, and Greens, despite some objections from smaller parties. The approval marks a decisive end to decades of austerity in Germany and signals a commitment to modernizing infrastructure and enhancing defense capabilities.