The Bundestag has approved historic loans aimed at bolstering defense, infrastructure, and climate protection, amending the Basic Law to exceed typical debt limits with a two-thirds majority. A special fund of 500 billion euros for infrastructure projects was also ratified. Despite internal dissent and heated debates, the coalition of Union, SPD, and Greens managed to secure the necessary votes, though criticism emerged regarding spending priorities. The next step involves seeking approval from the Bundesrat.
Historic Loans Approved by the Bundestag
The Bundestag has set a significant precedent by approving unprecedented loans aimed at enhancing defense, infrastructure, and climate protection initiatives. The deputies successfully voted for the necessary amendments to the Basic Law with a commanding two-thirds majority.
In a decisive move, the Bundestag endorsed the debt package proposed by the Union and SPD. With the required backing of two-thirds, the parliament sanctioned an amendment to the Basic Law, allowing for defense and security spending to exceed the usual debt limitations.
Moreover, a substantial special fund amounting to 500 billion euros for infrastructure projects was ratified. The previously stringent debt regulations for federal states are also set to be eased.
A total of 512 deputies supported the changes, while 206 opposed them, with no abstentions recorded. Bundestag President Bärbel Bas initially reported slightly different figures, but these were later amended.
Internal Dissent and Future Steps
Within the Union, SPD, and Greens, who had reached an agreement after extensive negotiations, only three deputies voted against the proposal: Jan Dieren (SPD), Mario Czaja (CDU), and Canan Bayram (Greens). This information was disclosed in a list shared by the Bundestag following the vote.
Additionally, seven other deputies chose not to vote, either due to illness or a conscious decision to abstain. Their names include Nezahat Baradari from the SPD and several members from the Greens and CDU.
The agreement among the Union, SPD, and Greens raises questions about its implications and the subsequent actions within both the Bundestag and Bundesrat.
The vote was preceded by a heated debate, with some deputies delivering farewell speeches as they prepare to exit the Bundestag. This included all members from the FDP and BSW.
Friedrich Merz, the prospective Chancellor, faced intense scrutiny from various factions, including the AfD, FDP, BSW, and the Left. Even members from the Greens, who collaborated on the debt package, held him accountable.
In defense of the proposed financial commitments, Merz emphasized the importance of Germany’s security in light of current geopolitical tensions, particularly referencing threats from Russia. He assured that the newly established infrastructure fund would not compromise fiscal discipline and pledged to implement necessary savings and reduce bureaucratic hurdles.
SPD faction leader Lars Klingbeil echoed these sentiments, highlighting the positive impact the investments will have on everyday citizens while stressing the need for efficiency and targeted reforms.
Defense Minister Boris Pistorius justified the urgency of the legislation, asserting that delays would equate to ignoring reality. He underscored the pressing need for infrastructure improvement and the importance of not compromising national security due to budgetary constraints.
Despite the approval, the plans sparked sharp criticism from various political groups. FDP leader Christian Dürr condemned the Union for allegedly prioritizing excessive spending over necessary reforms. Meanwhile, AfD faction leader Tino Chrupalla accused Merz of lacking the fortitude to resist reckless state borrowing.
Even members of the Greens, who had negotiated significant concessions, expressed dissatisfaction with the Union’s strategy. Britta Haßelmann called out Merz for failing to acknowledge the urgent need for investment in defense and infrastructure, despite having previously criticized calls for such funding.
In a notable moment, members of the BSW stirred controversy by displaying banners in the Bundestag after a speech by Sahra Wagenknecht, leading to a reprimand from Vice President Petra Pau.
The Bundestag has now officially voted on the amendments to the Basic Law, which were agreed upon by the CDU/CSU, SPD, and Greens. The debt brake, which typically restricts new federal borrowing, will now allow for increased spending in defense, civil protection, intelligence, and cybersecurity. Any spending in these categories exceeding one percent of the gross domestic product will be financed through loans, which is expected to surpass 44 billion euros this year.
Additionally, the newly created special fund, which is not subject to the debt brake, will source up to 500 billion euros to support infrastructure restoration, including bridges, energy networks, roads, and schools. Allocations include 100 billion euros for the states and another 100 billion euros earmarked for climate protection and the transition to a sustainable economy.
Next, the Bundesrat will need to approve these amendments with a two-thirds majority.