Germany’s Green party opposes debt-financed defense and infrastructure package

Published 10/03/2025, 13:08
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Investing.com -- Germany’s Green party has turned down a draft package that would allow for the release of hundreds of billions of euros in defense and infrastructure spending through debt financing.

The CDU-bloc and SPD had come to an agreement last week to largely separate defense spending from Germany’s debt restrictions and to initiate a €500 billion ($543 billion) infrastructure fund.

This move could potentially leave Friedrich Merz, the prospective chancellor, without the supermajority he needs to pass the legislation.

The Green party’s leaders have criticized the impending coalition for largely excluding the party from discussions and neglecting Green priorities such as climate action.

Katharina Droege, the co-leader of the Greens’ parliamentary caucus, expressed that the party is ready to negotiate a "real" reform to constitutional debt restrictions.

However, she would prefer to do this when the new lower house, the Bundestag, convenes after March 25.

In the upcoming Bundestag, the far-right Alternative for Germany and the anti-capitalist Left party will have enough votes to prevent a two-thirds vote. As a result, Merz and the SPD had hoped to hold a vote in the outgoing parliament next week.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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