After prolonged negotiations, Germany’s CDU/CSU and SPD have successfully brokered a compromise with the Greens regarding a debt-financed defense and infrastructure package. Union parliamentary group leader Friedrich Merz (CDU) expressed his strong approval of both the content and the outcome of the agreement in Berlin on Friday. He confirmed that the compromise was unanimously endorsed by his parliamentary group.
The cooperation of the Greens is essential in securing a two-thirds majority necessary to amend the Basic Law. Key aspects of the agreement include modifications to the debt brake for defense spending and state funding, along with a substantial €500 billion special fund earmarked for infrastructure projects.
As part of the negotiations, an important stipulation was made: investments from the special infrastructure fund must be explicitly additional, ensuring they are not allocated to existing projects or consumer spending. Additionally, €100 billion from this fund will be directed towards the Climate and Transformation Fund (KTF), which aims to facilitate the eco-friendly restructuring of Germany’s economy.
Merz acknowledged the intensity of the discussions, particularly the rigorous late-night negotiations since Thursday. Initially, he had proposed a maximum allocation of €50 billion to the KTF, but a more extensive agreement was eventually reached.
With this compromise in place, Germany moves forward with a reinforced commitment to both economic transformation and national defense, balancing fiscal responsibility with progressive investments in infrastructure and sustainability.
