The two parties are considering the creation of two special investment funds, one for the German army and another to modernize infrastructure
The two parties negotiating for the formation of a government in Germany are considering a huge plan to invest in defense and infrastructure, which may be hundreds of billion euros, Bild newspaper wrote in an article yesterday.
The issue was discussed on Friday during Friedrich Mertz’s Christian Democrats (CDUs), which emerged as the first party in the parliamentary elections, and the Social Democrats (SDP), with whom they are seeking to form a coalition government.
The two parties are considering creation very quickly two special investment fundsone for the German army – Given the need to strengthen European defense because of the US rupture- and another for the modernization of infrastructure of Germany.
The amounts discussed for each of these funds are “much larger” than the € 100 billion of the German army fund, which was decided in 2022 after the Russian invasion of Ukraine.
The negotiators examined the estimates presented by economists, who believe that the needs of the German army amount to 400 billion euros and those for infrastructure at 500 billion euros, Bild noted.
The idea is to set up these special funds outside the federal budget, with the government citing an emergency situation to bypass the strict rule of “brake debt” prohibiting the German state from having an annual budget of up to 0.35% of the country.
In order for the Conservatives and Social Democrats to do so, they need the support of two -thirds of the Members, which is not possible in the current House, which will be dissolved in late March to be replaced by the news that emerged from the 23rd of February.
But even in New Bundestag will be difficult for both parties to achieve the majority required to adopt their plan.
One of the main negotiators of the Christian Democrats, Torsten Fry, confirmed yesterday night that it was “likely” to vote on the issue in the coming weeks.
Source :Skai
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