Germany Secures Historic €500 Billion Defense, Infrastructure Spending Deal

Friedrich Merz, Germany's chancellor-in-waiting, announced a significant agreement with the Green party and the Social Democrats to boost defense and infrastructure spending, marking a pivotal shift in Germany's fiscal policy. The deal allows for defense spending exceeding 1% of GDP to be exempt from the constitutional 'debt brake', and establishes a €500 billion fund for infrastructure improvements. Merz emphasized that this initiative is crucial for Germany to enhance its independence in security matters amid declining U.S. support and increasing Russian aggression. The agreement also includes commitments to climate protection, allocating €100 billion from the infrastructure fund to address environmental concerns. A parliamentary vote on the proposals is scheduled for Tuesday, which will require a two-thirds majority. The deal reflects a broader recognition of the need for stronger defense capabilities in Europe, as Germany aims to take a more assertive role in regional security.