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German court clears path for Merz's massive borrowing plans
Published by Global Banking & Finance Review®
Posted on March 14, 2025
1 min readLast updated: January 24, 2026
Global Banking & Finance Review®
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Published by Global Banking & Finance Review®
Posted on March 14, 2025
1 min readLast updated: January 24, 2026
Germany's court clears the way for Merz's borrowing plans, enabling a 500-billion-euro fund. The coalition seeks to reform debt rules with parliamentary support.
BERLIN (Reuters) - Germany's constitutional court threw out several challenges by opposition parties against a plan by the prospective coalition government to push a massive public spending initiative through the outgoing parliament, it said on Friday.
The decision paves the way for parliament to convene next week to consider the proposals of conservative election winner Friedrich Merz to reform constitutional debt rules and set up a 500-billion-euro ($545-billion) infrastructure fund.
Merz's conservative bloc and the Social Democrats, seeking to form Germany's next government, have won the support of the Greens to pass the plans with a two-thirds majority in the old parliament.
(Writing by Rachel More; editing by Matthias Williams, Kirsti Knolle)
The article discusses Germany's court approval of Merz's borrowing plans, including a 500-billion-euro infrastructure fund.
The plan involves reforming constitutional debt rules and setting up a 500-billion-euro infrastructure fund.
The conservative bloc, Social Democrats, and the Greens support the borrowing plans.
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