Even infrastructure investments of up to 500 billion euros over ten years are included in the agreement, which takes place within the framework of government talks between Merz's Christian Democrats (CDU/CSU) and the Social Democratic SPD.
The defense investment is to be resolved through a relaxation of the constitutionally anchored debt brake, which has long been a budgetary policy holy grail in Germany. The proposal means that all investments exceeding one percent of GDP – equivalent to around 45 billion euros or half a billion kronor in today's situation – are exempt from the otherwise strict rules on borrowing.
To pass the decision, a qualified majority of two-thirds in the Bundestag is required, which means that the timetable is tight. In just a few weeks, a new parliament will take office, where the fringe parties together have more than a third of the seats. Therefore, Merz wants to hold a vote with the outgoing assembly as early as next week.
