Agreement on substantial financial package

Berlin (dpa/d.de) - The CDU/CSU alliance and the SPD have agreed during their exploratory talks to reform the debt brake in the Basic Law to allow more defence spending. This would see future loans for all defence expenditure exceeding one percent of gross domestic product (GDP) being exempted from the rule - based on Germany’s GDP in 2024, this would apply to all spending above roughly 43 billion euros. In a parallel step, a special fund of 500 billion euros is to be created for the modernisation of infrastructure such as roads, railways, bridges and energy grids. 

Following the exploratory talks with the SPD, CDU/CSU chancellor candidate Friedrich Merz has pledged to undertake every necessary effort to ensure the defence readiness of Germany and its allies. “In view of the threats to our freedom and peace on our continent, whatever it takes must now also apply to our defence,” Merz said.

Defence Minister Boris Pistorius (SPD) sees the agreement reached between the CDU/CSU bloc and the SPD on the financial package as a gamechanger for boosting the country’s security. “This is a historic day, for the Bundeswehr and for Germany,” Pistorius said in an interview.

The aim is to get the reform passed by the old Bundestag so that it cannot be blocked by the AfD and the Left Party once the parliament reconvenes in its new post-election composition. 
The lead negotiators of the CDU/CSU and the SPD plan to meet with incumbent Chancellor Olaf Scholz today. The plan is to share views ahead of Thursday’s EU summit in Brussels.