Germany eyes defence boost with new debt agreement
The future chancellor of Germany, Friedrich Merz, confirmed on Friday that the CDU/CSU Christian Democratic parties and Social Democrats have reached an agreement with the Greens to increase Germany's debt to allocate additional funds for defence purposes. The vote on this matter will take place on Tuesday in the Bundestag.
"Germany is back in the game," declared Merz, adding that this agreement is a signal to Berlin's partners and opponents about Germany's determination to strengthen its defence.
The agreement stipulates that spending exceeding 1 percent of GDP on defence and security will be excluded from the so-called debt brake. For this purpose, a constitutional amendment is necessary, which in turn requires a two-thirds majority in parliament. To secure the necessary number of votes, the Christian Democrats and Social Democrats needed the support of the Greens or the liberal FDP.
Earlier on Friday, Reuters reported on the arms agreement. Meanwhile, the Tagesschau service noted that the budget committee postponed its meeting from the morning to late afternoon Eastern Time, providing more time for discussions. The committee's recommendation is essential for the plan to be finally presented to the Bundestag on Tuesday.
However, as the "Bild" newspaper's portal learned, 100 billion euros (approximately 155 billion CAD) is to be allocated to the climate protection fund KTF. CDU/CSU and SPD had previously offered 50 billion euros (approximately 78.5 billion CAD). CDU/CSU and SPD also want to create a special fund for infrastructure reconstruction amounting to 500 billion euros (approximately 785 billion CAD) over ten years.
