German Parties Reach Historic Agreement on Overhauling Debt to Improve Military and Economy

Germany's prospective coalition partners are considering easing debt regulations in order to boost defense expenditures amid mounting worries over U.S. backing for European partners. Their goal is to establish a €500 billion fund for enhancing Germany's infrastructure within the upcoming decade. Friedrich Merz suggested exempting defense outlays exceeding 1% of GDP from borrowing constraints. SPD leader Klingbeil affirmed that revisions to the constitutional debt limit are forthcoming by the end of the year to prevent impeding investments.