Union and SPD agree on a billion-dollar financial package

In addition, a special fund for the Repair of the infrastructure can be created with 500 billion euros. Both decisions are to be made by the old German 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 on the change of course of the United States under President Donald Trump will react in Ukraine policy. On Wednesday, the leaders from Union and SPD want to with the outgoing Chancellor Olaf Scholz (SPD) coordinate that 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.

Voices of the Greens or the FDP necessary

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.

SPD manager Lars Klingbil emphasized that Germany would now tackle 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.