A German parliament, the Bundestag, has given the green light for a black-red debt package. In a nameless voting, the constitutional law amendments for a relaxation of the debt brake and a special infrastructure fund of 500 billion euros were approved on Tuesday with the necessary two-thirds majority.
In detail, 513 members of parliament voted in favor of the plans, 207 against, with no abstentions. The basis of the decisions are the coalition agreement results of the Union and the SPD, as well as further agreements with the Greens, who together with the three factions have a majority of 520 members in the 20th German Bundestag.
According to the decision, future expenditures for defense and other security policy expenditures above one percent of the nominal gross domestic product will no longer be counted towards the debt rule of the constitution. This also includes expenditures of the federal government for civil and population protection, as well as for the intelligence services, for the protection of information technology systems and for “help for states attacked in violation of international law”.
Furthermore, the constitution will be amended to enable the establishment of a special fund of 500 billion euros. The corresponding credits will also be exempt from the debt rule. The Greens had succeeded in having the purpose of the funds changed from “for investments in infrastructure” to “for additional investments in infrastructure and for additional investments to achieve climate neutrality by 2045”.
100 billion euros will be made available to the states for investments and another 100 billion euros will flow into the climate and transformation fund. The special fund will have a twelve-year term. The additional character of the special fund will be ensured by first achieving an “adequate investment ratio” in the regular federal budget.
After the Bundestag’s decision, the federal council must still approve the package on Friday. After CSU and the Free Voters had reached an agreement on the debt package on Monday, a majority is considered secure in the federal council as well.