Reichstag building in the early morning.
Paul Zinken/DPA | Photo alliance Gety pictures
Bundestag is scheduled to vote in Germany on a major financial package later on Tuesday, which includes changes to long -term debt policies to enable the higher defense spending and a basic fund of 500 billion euros ($ 548 billion).
More than two -thirds of Parliament needs to support the package in order to pass and become dedicated to the constitution of Germany. After that, the law must be approved by the Bunyrat, a body that represents the states of the country, on Friday.
Under the proposed new laws, defense and certain security expenses will not be subject to a specific threshold of debt brakes, which limits the amount of debts the government can take and dictate the size of the structural budget deficit of the federal government.
Loans obtained as part of the infrastructure box will be exempted from debt brakes, while German countries will also get greater flexibility around the debt.
The Christian Democratic Union, along with its brotherly party, the Christian Social Union, which jointly won the largest share of votes in the national elections in Germany in February, suggested the financial shift in cooperation with the Social Democratic Party. The factions seem likely to form the incoming coalition government, as the financial reform package was a secondary product for talks about a possible ruling partnership between them.
Tight vote
The timeline of passing the reforms is high because it requires changes to the constitution, which means that it must gain the support of two -thirds of Parliament and the Punists. This is likely to be possible only before the new parliament, which was elected in February, meets for the first time next week, as the parties that oppose the financial package will meet a greater share of voting and can prevent plans.
Many parties that oppose reforms have also launched legal challenges to vote.
In the past on Tuesday, CDU-CSU and SPD were also negotiating to support the Green Party in Germany, and finally agreed to a bargaining Which includes 100 billion euros from the infrastructure fund that is allocated for climate and economic transformation efforts and expanding issues related to security -exempt security.
If all members of Parliament representing the CDU-CSU, SPD and Green Party support the package, there will be 31 votes of votes to achieve the two-thirds majority of the Bundestag to pass the reform.
A boost to the economy?
The reaction of analysts and economists in general was positively to the initial declaration of plans earlier this month, as they viewed as a possible big boost to the stalled economy in Germany.
The German economy made a small difference in a technical stagnation – defined by two consecutive quarterly of economic contraction – during the years 2023 and 2024, but it was actually stagnant.
the OECD On Monday, he said on Monday that it is expected that German GDP will grow by 0.4 % annually this year, a decrease from the previously expected expansion by 0.7 %. German Economic Institute Ifo Meanwhile, she said that she cuts her view of the country’s economy to 0.2 % on an annual basis.
It comes at a time when Germany faces sustainable infrastructure problems, as well as issues in major industries such as building homes and cars. The country is also fighting the threat of possible definitions imposed by US President Donald Trump on imports to the United States from Europe – which may be particularly difficult for Germany because of its high levels of trade with the United States
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