Germany’s two leading political parties are reportedly preparing to invest hundreds of billions of euros into the country’s defence and infrastructure as part of their coalition talks.
According to a report by Bild, the CDU/CSU alliance and the centre-left Social Democrats (SPD) are considering the creation of two special investment funds to address these critical areas.
With Germany’s economy struggling and concerns over the continent’s security following the United States’ shift towards Russia, the plan aims to boost both the military and the country’s infrastructure.
The discussions come in the wake of the 100 billion euros allocated to the military in 2022 after Russia invaded Ukraine, with negotiators now looking at increasing this amount to 400 billion euros.
The infrastructure fund could see even higher investments, potentially reaching half a trillion euros.
These funds would be outside of Germany’s federal budget, exempt from the country’s “debt brake,” a constitutional rule that limits borrowing.
However, relaxing this restriction would require a two-thirds majority in parliament, which the proposed coalition would not have, making such a reform a complex issue.
This ambitious plan reflects the urgency felt by Germany’s future leaders to address security challenges and modernise the nation’s infrastructure, especially as Europe grapples with ongoing geopolitical tensions.
