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German minister Friedrich Merz agreed with the Green Party.
GREENS, which threatened to block this contract early this week, has secured concessions of MERZ and expanded additional defense expenditures to deal with more investment in green transitions and support for Ukraine, civil protection, information technology and intelligence agencies.
Mertz said on Friday that “there will no shortage of financial resources to defend the freedom and peace of the continent.” “Germany is back. Germany is contributing to defending Europe’s freedom and peace. ”
Katarina Dröge, a green co -leader of the German National Assembly, said her party said, “I want to invest in the modern economy in the future.” As part of the compromise, one -fifth of the 50 billion euros infrastructure funds planned over the next 12 years will be assigned to green conversion.
MERZ needed GREENS support to pass the stimulus package with a number of two -thirds in the emergency session of Congress.
His Christian Democratic Party (CDU/CSU) and his united partner, the Social Democratic Party (SPD), still ordered the Green of the Council, but they are no longer elected in February and do not do so in this month.
MERZ agreed to solve the strict constitutional borrowing limit of the state for defense expenditures and establish a 50 billion euros fund to modernize Germany’s transportation, energy, health and communication infrastructure.
The plan, which requires a constitutional change, has been stagnant for more than five years, increasing the largest economy in Europe, and signaled to Europe that Germany is ready to play a bigger role in continental security.
HEC Professor Armin Steinbach said, “In materials and defense, there is much more room for the government in the field of infrastructure and defense. “The new fiscal limit for the German budget will no longer be a German debt brake, but the EU fiscal rules.”
Germany’s borrowing costs have soared since MERZ has overlooked the expenditure plan. This allows investors to borrow unlimited borrowings for defense expenditures as investors bet on the massive increase in bonds and brighter economic prospects in Germany.
The 10 -year bend return was high at 2.94 %on Friday and the highest level since October 2023. The Euro has risen 0.4 % to $ 1.089, expanding its profits for the dollar to more than 5 % this year.
Earlier this week, Green said he would oppose the package, and Mertz urged him to be ready to yield.
“This compromise was probably the largest mountain. [Merz] I had to go up, but there are more mountains next week, ”Steinbach said.
The German Constitutional Court is due to the rule of legal issues against the left side to prevent the Parliament from the top priority (AFD) for Germany (AFD) and the left left, Linke.
The Constitutional Amendment should also be adopted in the majority of two -thirds of the House of Representatives, representing 16 states. Bundesrat will vote for the package on March 21.
The CDU, SPD, and Greens, which are less than two -thirds of the seats in the Bundesrat, need to overcome the conservative free voters in Bavaria, along with the sister party, CSU or Liberal FDP of the CDU, and to overcome the conservative free voters in the united government in two states. Both FDP and free voters are traditionally opposed to alleviating the country’s debt brakes.
Additional report of Ian Smith in London
