Germany Agreement on German billion-euro package
Germany's planned billion-euro package for defense and infrastructure has cleared an important hurdle: The parliamentary group leaders of the CDU/CSU, SPD and Greens have reached an agreement after lengthy discussions.
14.03.2025, 13:19
SDA
This was reported to the German Press Agency in Berlin. Details on the content of the compromises were not initially disclosed.
The current Bundestag could approve the package next Tuesday, after which approval by two-thirds of the votes in the Bundesrat (chamber of the federal states) is also required.
Time was of the essence
In the new parliament, which will be constituted on March 25, the Christian Democrats, SPD and Greens no longer have the necessary two-thirds majority. Time was therefore pressing to pass the package with the old Bundestag.
In their exploratory talks for a coalition, the CDU, CSU and SPD had agreed to relax the debt brake in the constitution for higher defense spending and to create a debt-financed special fund of 500 billion euros for infrastructure. However, the Greens had initially refused to give their consent, which was necessary for a decision.
Numerous meetings
CDU/CSU parliamentary group leader and candidate for chancellor Friedrich Merz, SPD parliamentary group leader Lars Klingbeil, CSU regional group leader Alexander Dobrindt and the two Green parliamentary group leaders Britta Hasselmann and Katharina Dröge had met repeatedly in confidential meetings to look for solutions.
Merz made offers
At least they came closer on the second point. In the Bundestag on Thursday, Merz offered to relax the debt brake not only for defense, but also for civil protection, civil defence and intelligence services. He also suggested earmarking a portion of infrastructure loans for climate protection. However, the Greens lacked guarantees both for more money for the climate and that climate protection spending would actually increase.
The Greens had also suggested splitting up the package. This is because there is time pressure, especially when it comes to defense, where majorities in the new Bundestag would be difficult to achieve. On the other hand, an agreement with the Left Party would be conceivable for more money for infrastructure. However, the SPD found itself in a dilemma here: it feared that the Christian Democrats would no longer go along with it on infrastructure once higher defense spending was secured.
Approval in the Bundesrat uncertain
The amendments to the Basic Law could be passed by the Bundestag on Tuesday. However, the majorities for this are less certain than usual because many members of the CDU/CSU, SPD and Greens are leaving the Bundestag and could therefore feel less bound by the usual parliamentary group discipline.
The Bundesrat could then decide on Friday - here too, a two-thirds majority is required for a decision. This is also not yet certain, as the federal states can only agree if their governing coalitions have found a common line. Otherwise they must abstain, and an abstention is like a no vote.
