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German parties strike deal to pass historic debt-funded investment package

  • Germany's two main centrist parties, the Christian Democrats and the Social Democrats , reached a deal with the Greens for a significant infrastructure and defense spending package, marking a shift in fiscal policy.
  • The agreement allows spending of up to €1 trillion over the next decade, with a special fund of €500 billion for infrastructure projects outside the normal budget.
  • CDU leader Friedrich Merz stated that the deal was an "acceptable, good result" and included a €100 billion allocation for climate projects.
  • The coalition will require a two-thirds majority in the Bundestag and may seek support from other parties due to recent election losses.
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profil.at broke the news in on Thursday, March 13, 2025.
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