Germany's CDU and SPD reach historic debt deal to jumpstart defence spending

Politics and GovernmentPolitics and Government

Sat, March 15, 2025

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Germany's CDU and SPD reach historic debt deal to jumpstart defence spending

^{Published on 2025-03-15 05:20:54 - Euronews}

The agreement reached with the Greens would allow Germany to spend up to
1 trillion on defence and infrastructure over the next decade. View on euronews

The Christian Democratic Union (CDU) and the Social Democratic Party (SPD) in Germany have reached a historic agreement to address the country's defense spending, which has been under scrutiny for not meeting NATO's 2% GDP target. This deal, announced on a recent Friday, involves suspending Germany's debt brake for the fourth consecutive year to fund a significant increase in military expenditure. The agreement aims to provide an additional €100 billion to the Bundeswehr, Germany's armed forces, to modernize and enhance its capabilities. This move comes in response to heightened security concerns due to Russia's actions in Ukraine and aims to align Germany more closely with NATO commitments. The decision to bypass the constitutional debt limit, which restricts the federal government's structural deficit to 0.35% of GDP, reflects the urgency of bolstering defense in light of current geopolitical tensions.

Read the Full Euronews Article at:
[ https://www.msn.com/en-in/politics/government/germany-s-cdu-and-spd-reach-historic-debt-deal-to-jumpstart-defence-spending/ar-AA1AVmRe ]

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