Germany's Christian Democrats, Social Democrats, and Greens agree to huge fiscal package

16:1514/03/2025, Friday
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File photo
File photo

Current Bundestag could pass package next Tuesday, but after that, approval by 2/3 of votes in Federal Council is also required

The parliamentary leaders of the Christian Democratic Union and its Bavarian sister party the Christian Social Union (CSU), along with the Social Democrats (SPD) and the Greens, have reached an agreement on a multi-billion euro defense and infrastructure package after lengthy talks, media reports said Friday.

Details of the substantive compromises were not initially disclosed.

The current parliament (Bundestag) could pass the package next Tuesday, but after that, approval by two-thirds of the votes in the Federal Council (Bundesrat) is also required.

In the new parliament, set to constituted on March 25 following last month's snap polls, the CDU/CSU, SPD, and Greens no longer have the necessary two-thirds majority, so time was running out to pass the package with the lame duck Bundestag.

In their exploratory talks for a coalition, the CDU, CSU, and SPD had agreed to relax the debt brake to allow for higher defense spending and to create a debt-financed special fund of €500 billion ($545 billion) for infrastructure.

However, the Greens initially refused their approval, which is necessary for passage.

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