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The Reichstag building is early in the morning.
Paul Zinken/Dpa | Drawing alliance Gets the image
Germany Bundestag intends to vote for a major financial package later on Tuesday, which includes changes to the long -standing debt policy to provide higher defense costs and 500 billion euros (548 billion dollars) infrastructure and climate fund.
More than two -thirds of the parliament should support the package to pass and secured in the German Constitution. Then the law must also be passed by the Bundesrat, a body representing the countries of the country on Friday.
According to the proposed new laws, protection and certain safety costs above a particular threshold are no longer subject to debt, which limits how much debt the government can take, and dictates the size of the federal government’s structural budget.
The loans accepted as part of the infrastructure will also be exempted from debt, while German states will also have great flexibility around the debt.
The Christian Democratic Union, together with its party, the Christian Social Union, which jointly won the largest share of votes in the German national elections in February, offered a financial shift in cooperation with the Social Democratic Party. It seems that fractions are probably forming a government government, and a financial reform package is a by -product talk about potential partnership management between them.
A tight voice
Time of pressure on the transition of reforms is high, as they require changes to the Constitution, that is, it must earn the support of two -thirds of both parliament and the Bundesrat. This is probably only possible before the new parliament, which was elected in February, is united for the first time next week, as the parties opposed to the financial package will have a large proportion of voting and may block plans.
Several parties that oppose the reforms also unsuccessfully launched legal problems to interfere with the vote.
As a result of the voting on Tuesday, CDU-CSU and SPD were also to agree on the Green Party of Germany, eventually agreeing to A, compromise which includes EUR 100 billion Infrastructure Fund, which is allocated on climate efforts and economic transformation, and expanding security issues exempt from debt.
If all the MPs of the Parliament, which are part of the CDU-CSU, SPD and Green Party, had to support the package, to reach the two-thirds necessary for the reform, there would be 31 voting buffers.
Incentive for the economy?
Analysts and economists responded positively to the initial message of plans earlier this month, considering them as a potentially great stimulus to combat Germany.
The German economy narrowly overcome the technical recession – determined by two consecutive quarters of economic reduction – for 2023 and 2024, but was effectively stagnant.
A Oecd On Monday, he said that this year he predicts the gross domestic product of Germany by 0.4%, which compared to the previously predicted extension of 0.7%. German Economic Institute Ifo Meanwhile, he said he reduced his forecast for the country’s economy to 0.2% compared to last year.
This happens when Germany faces sustainable infrastructure problems as well as problems in key areas such as home construction and toss. The country is also fighting the threat of potential tariffs imposed by US President Donald Trump on the US from Europe – which may be particularly difficult for Germany from the high level of trade from the US from the US
