German parties reach deal over huge spending plan

Germany CDU/SDP
Chairman of the Germany’s Social Democratic Party (SPD) Lars Klingbeil gives a statement on March 14, 2025 in front of the Reichstag in Berlin. The CDU party of Germany’s likely next leader Friedrich Merz has struck a deal with the Greens on a massive spending plan, a party source told AFP, paving the way for its approval in parliament. The plans jointly put forward by the centre-right CDU and centre-left Social Democrats (SPD) would see defence spending exempted from the country’s constitutionally enshrined debt brake when it exceeds one percent of GDP, as well as a 500-billion-euro ($545-billion) special fund for infrastructure investment. (Photo by RALF HIRSCHBERGER / AFP)

Germany’s centre-right CDU party has struck a deal with the Greens on a massive spending plan, a party source told AFP Friday, paving the way for its approval in parliament next week.

The plan jointly put forward by the CDU, whose leader Friedrich Merz is likely Germany’s next chancellor, and centre-left Social Democrats (SPD) would see defence spending exempted from the country’s constitutionally enshrined debt brake when it exceeds one percent of GDP.

It also calls for a 500-billion-euro ($545-billion) special fund for infrastructure spending.

The Green party also said in a statement that there had been an “agreement” reached on the issue, with further details expected in the afternoon.

It was not immediately clear how far the proposal has been changed to gain the Greens’ approval.

Their votes are necessary to achieve the two-thirds majority in parliament needed to modify the debt brake.

Merz had said on Thursday that 50 billion euros from the infrastructure fund could be set aside for climate protection measures.

The deal follows several days of often acrimonious debate during which the Greens had threatened to withhold their support, citing insufficient action on the environment in the plan.

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