The giant package was passed by the federal parliament earlier in the week and has now also been approved by the federal council, where the states are represented.
The decision means the green light for 500 billion euros in new loans for infrastructure, as well as a relaxation of the borrowing rules for defense expenditures. The latter is to enable credits of hundreds of billions of euros that will finance the significant military buildup that election winner Friedrich Merz and many other experts believe is necessary.
Christian Democrat Merz, who previously said no to a reform of the constitutionally anchored debt brake, is expected to shortly succeed Social Democrat Olaf Scholz as Federal Chancellor.
Despite the new government not having taken office, the future coalition parties CDU/CSU and SPD managed to push through the historic law changes with the help of the Greens, following promises of climate investments of around 100 billion euros.
