Berlin, Mar 19 (V7N) – Germany is on the brink of a historic economic shift as its parliament, the Bundestag, approved a constitutional amendment to ease debt restrictions, allowing the government to take on a massive €500 billion loan. The upper house of parliament, the Bundesrat, will hold a final vote on Friday, which is expected to confirm the decision.

The move comes as Germany’s economy struggles to regain momentum. "Germany is coming back to its old self," declared Friedrich Meier, leader of the conservative Christian Democratic Union (CDU) and the likely next chancellor of Germany.

After hours of heated debate on Tuesday, the Bundestag voted in favor of the bill with 513 votes against 207. The amendment required at least 489 votes to pass. If the Bundesrat also approves the change, Germany will be free from the long-standing constitutional rule that limits government borrowing to just 0.35% of GDP.

"We have had a false sense of security for at least a decade," said Friedrich Metz, a key CDU leader. "The decision we are taking today on defense readiness is nothing less than the first major step toward a new European defense community."

  • €100 Billion for state governments to invest in heating and energy projects.
  • €100 Billion for climate protection and green industries, pushed by the Green Party.
  • €300 Billion primarily allocated to the military sector, significantly boosting Germany’s defense budget.

The Washington Post reports that this reform could allow Germany to invest up to $1 trillion in defense and infrastructure over the next decade.

European leaders welcomed the decision. EU Commission President Ursula von der Leyen said, “This sends a very clear message that Germany is determined to invest heavily in defense.” Danish Prime Minister Mette Frederiksen echoed the sentiment, emphasizing the need for a strong Europe.

The new defense deal also includes an additional $3.3 billion in aid for Ukraine, raising Germany’s total commitment to $7.3 billion by 2025. This makes Germany the second-largest supporter of Ukraine after the United States.

A survey by Infratest Dimap found that 66% of Germans support increased defense spending, while 20% prefer to maintain the current budget, and only 11% want to cut military funding.

The Bundesrat’s final vote on Friday will determine whether the amendment officially becomes law. If passed, it will mark a turning point for Germany, signaling a new era of military expansion and economic flexibility.

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