Explorations
Union and SPD are having historical financial package
The skirmishes from the election campaign are forgotten. After only three rounds of discussion, the Union and SPD put together a gigantic financial package and made a big leap to coalition negotiations.
Union and SPD have achieved a first breakthrough in their exploratory talks and put together a financial package of historical extent for defense and infrastructure. On the one hand, the debt brake for defense expenditure is to be relaxed in the Basic Law, as the negotiators announced in Berlin after their third round of exploratory round. In addition, a special fund is to be created for the repair of the infrastructure with 500 billion euros.
Both decisions are to be made by the old Bundestag due to the complicated majority. The Union and SPD alone do not have the required two-thirds majority for a change in the Basic Law. You therefore need votes from Greens or FDP.
The financial resolutions are the first agreement in the exploratory talks of the Union and SPD, which have been running since the end of last week, about government formation. The negotiations are now to be continued on Thursday and Friday in order to make further decisions on the topics of household, migration, competitiveness, internal security and migration. The aim is to “complete the consultations promptly,” said CDU boss Friedrich Merz.
Merz: “Whatever it Takes” in defense
The decisions are also considered an important signal for Germany’s ability to act with a view to the EU summit on Thursday. It will be about how Europe will react to the US course change under President Donald Trump in Ukraine policy. On Wednesday, the leaders from Union and SPD want to coordinate with the outgoing Federal Chancellor Olaf Scholz (SPD), who takes part in the summit.
“In view of the threats of our freedom and peace on our continent, our defense must now also apply: Whatever IT Takes,” said Merz after the exploratory success. Therefore, those defense spending should be excluded from the debt brake that are over one percent of gross domestic product. That would be – calculated with the GDP from 2024 – all about 43 billion euros.
Special funds for infrastructure should run over ten years
However, this can only be cope with if the economy comes back to a stable growth course within a very short time. For this, the infrastructure must be improved. “The necessary funds cannot be financed solely from the ongoing households of the federal government, the federal states and the communities,” said Merz. The planned credit -financed special fund should run over ten years.
A special fund is a pot apart from the federal budget, from which measures are financed with a very specific purpose. If you anchor it in the Basic Law, you can also take it out of the debt brake, which actually limits borrowing to a small amount. This is exactly what is now planned according to Merz.
Countries should also be able to make more debts
In addition, the countries should also have the opportunity to make more debts. Their debt brake, which is so far particularly strict, is to be adapted to the somewhat more flexible federal regulation.
Due to the complicated majority relationships in the new Bundestag, the Union and SPD want to decide on the necessary changes to the Basic Law with the old Bundestag. Because in the new parliament, the so -called middle – i.e. Union, SPD and Greens – no longer have a two -thirds majority. AfD and the left are so strong that they could block a change in the Basic Law.
Green tests – criticism from FDP
A decision of the old Bundestag is theoretically possible until the new parliament is constituted. Here, too, the Union and SPD cannot act alone: For the necessary two-thirds majority, they need votes either the Greens or the FDP.
So far, the FDP has always been against a reform of the debt brake, so the negotiators are likely to rely on the Greens. FDP parliamentary group leader Christian Dürr criticized the union and SPD. “In my view, debts for all sorts of people in Germany are irresponsible,” says Dürr of the German Press Agency.
The Greens parliamentary group reacted reluctantly to the agreement between the Union and the SPD to a financial package for defense and infrastructure. “We will now look at the suggestions in peace,” announced parliamentary group leader Britta Haßelmann. The co-faction leader said in the ARD: “We don’t go for anything.” Both complained that climate protection does not occur in the suggestions for infrastructure. And with a view to the debt brake, they accused Merz to say something different after the election than before the election.
Klingbeil: “Stop wear our country”
SPD boss Lars Klingbeil emphasized that Germany would now approach the big investment backlog. “A future government has to stop the wear of our country,” he said. In the further discussions, the SPD wants to urge families to relieve the pensions stable and that there is a fair tax system. At the very front, however, there is a common understanding of the size and the importance of the task, said the SPD leader with a view to the agreement on financial issues.
Söder speaks of “Germany package”
CSU boss Markus Söder spoke of a large “Germany package” and a signal to friends and enemies. Serious times required very serious measures.
dpa
Source: Stern

I have been working in the news industry for over 6 years, first as a reporter and now as an editor. I have covered politics extensively, and my work has appeared in major newspapers and online news outlets around the world. In addition to my writing, I also contribute regularly to 24 Hours World.