Chancellor-elect Friedrich Merz said on Tuesday that the Christian Democrats (CDU/CSU) and the Social Democrats (SPD) will propose hundreds of billions of euros for defense and the economy.
The two parties will propose to the Bundestag next week a “special fund” of 500 billion euros for the next ten years for economic development.
They will also exempt more defense spending from Germany’s constitutional “debt brake.”
The “debt brake,” incorporated into the constitution in 2009, limits public borrowing to no more than 0.35 percent of gross domestic product (GDP).