German Parties Reach Agreement on Landmark Debt-Funded Investment Package

Germany's two primary centrist parties, the Christian Democrats and the Social Democrats, have struck a deal with the Greens for a substantial infrastructure and defense spending plan, signifying a shift in fiscal policy. The agreement permits expenditures of up to €1 trillion over the next ten years, including a dedicated fund of €500 billion for infrastructure projects beyond the regular budget. CDU leader Friedrich Merz described the agreement as a satisfactory outcome, highlighting a €100 billion earmark for climate initiatives. To secure the coalition, a two-thirds majority in the Bundestag will be necessary, prompting potential outreach to other parties following recent electoral setbacks.