Politics Germany: New draft bill on financial package available
Following the agreement between the CDU/CSU, SPD and Greens, a new draft bill for the planned multi-billion financial package for defense, infrastructure and climate neutrality is now available. According to the draft, it is to be stipulated in the Basic Law that the investments from the debt-financed, 500 billion euro special fund are intended "for additional investments".
15.03.2025, 11:25
SDA
"Additionality exists if an appropriate investment ratio is achieved in the federal budget in the respective financial year," the draft states. However, it does not define when exactly the investment ratio is deemed appropriate.
Climate neutrality in the Basic Law
100 billion euros from the special pot are to flow into the existing Climate and Transformation Fund, which is used to finance climate protection and the climate-friendly restructuring of the economy. The wording "climate neutrality by 2045" will also be written into the Basic Law with the special fund.
In addition, the draft states that the planned relaxation of the debt brake applies not only to defense spending, but also to federal spending on civil defense and civil protection, intelligence services, cyber security and aid for states attacked in violation of international law.
The Budget Committee is to discuss the planned amendments to the Basic Law on Sunday. It will then make a recommendation for the decisive session of the Bundestag on Tuesday.
