Financial package put together

CDU/CSU and SPD achieve breakthrough in talks

From left: CDU leader Friedrich Merz and SPD leader Lars Klingbeil(Bild: AFP/Ralf Hirschberger)

In Germany, the CDU/CSU and SPD have achieved a first breakthrough in their exploratory talks. They have put together a financial package worth billions. For example, the debt brake for defense spending is to be relaxed.

A special fund for infrastructure with 500 billion euros is also planned. Both resolutions are to be passed by the old German Bundestag. The CDU/CSU and SPD alone do not have the two-thirds majority required to amend the Basic Law. They are therefore dependent on the votes of the Greens or the FPD.

The financial resolutions are the first agreement; exploratory talks on forming a government have been underway since the end of last week. "In view of the threats to our freedom and peace on our continent, whatever it takes must now also apply to our defense," said the Chancellor. Therefore, defense spending that exceeds one percent of gross domestic product should be exempt from the debt brake. That would be anything over around 43 billion euros.

Duration of more than ten years
The planned credit-financed special fund is to run for ten years. A special fund is a pot outside of the federal budget from which measures with a very specific purpose are financed. The federal states are also to be given the opportunity to take on more debt. Their debt brake is to be adapted to the more flexible federal regulation.

The FDP has so far resisted a reform of the debt brake, which is why the negotiators are likely to rely primarily on the Greens for the necessary majority. "A future government must stop the deterioration of our country," said SPD leader Lars Klingbeil. In the further negotiations, his party wants to push for relief for families, stable pensions and a fair tax system.

Further decisions on the budget, migration, competitiveness, internal security and migration are to be taken on Thursday.