Germany plans $1.3 trillion spending package to boost economy

Germany is on the verge of a major fiscal reform that aims to rejuvenate its economy and enhance Europe's response to shifting dynamics in U.S. foreign policy. The proposed changes to the country's 'debt brake' would allow for increased defense spending and a significant 500 billion euro investment in infrastructure. This reform comes as Germany faces concerns over U.S. protection amid rising threats from Russia, particularly in the context of Donald Trump's foreign policy approach. Friedrich Merz, likely to become Chancellor, is expected to lead a two-party coalition that supports these changes, marking a significant shift from Germany's historically restrictive fiscal policies. Analysts suggest this could redefine Germany's role in the European economy, moving away from its previous constraints. Overall, these developments signal a pivotal moment for Germany and potentially the EU as they adapt to new geopolitical realities.