Last week, Friedrich Merz, Olaf Scholz's likely successor as Federal Chancellor after the Christian Democrats' election victory in February, announced that he had reached an agreement with the Social Democrats on a massive package to boost the German economy and simultaneously implement a historically extensive upgrade.
The package includes defense investments of hundreds of billions of euros, intended to be financed through loans after a relaxation of the country's constitutionally mandated debt brake. It also contains infrastructure investments of up to 500 billion euros over ten years. Germany's strict borrowing rules had previously stood in the way of similar plans.
As recently as Monday, The Green Party categorically rejected the plans. Now, the party has shifted its stance, following promises of around 100 billion euros for climate investments, which, according to German media, will be deducted from the total sum for infrastructure.
The plans need to be approved before the new Bundestag takes office to avoid complicated negotiations with fringe parties that made gains in the election.
