Germany's conservatives, SPD agree debt brake reform proposal
Published by Global Banking & Finance Review®
Posted on March 4, 2025
1 min readLast updated: January 25, 2026
Published by Global Banking & Finance Review®
Posted on March 4, 2025
1 min readLast updated: January 25, 2026
Germany's Conservatives and SPD propose loosening the debt brake to boost defense spending and create a 500 billion euro infrastructure fund.
BERLIN (Reuters) - The conservatives and the Social Democrats (SPD) agreed to seek a loosening of Germany's debt brake to allow higher defence spending, and to propose the creation of a 500 billion euro infrastructure fund, their leaders said on Tuesday.
"We are aware of the scale of the tasks ahead of us, and we want to take the first necessary steps and decisions," Merz said.
(Reporting by Riham Alkousaa and Sarah Marsh, editing by Thomas Escritt)
The conservatives and the Social Democrats (SPD) aim to loosen Germany's debt brake to facilitate higher defense spending.
Merz, a leader from the conservative party, expressed awareness of the challenges ahead and the need for decisive steps.
The proposal includes the creation of a 500 billion euro fund.
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