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Home Steel News Germany passes constitutional reform to allow €500 billion in new debt for defense, infrastructure, climate
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Germany passes constitutional reform to allow €500 billion in new debt for defense, infrastructure, climate

21 Mar 2025 13:43 reported by Stanley Wang

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Germany’s parliament passed a constitutional reform to enable the government to take on hundreds of billions of euros in new debt for defense, infrastructure, and climate investments. The reform, which still requires approval from the federal state governments, allows exemptions to the country’s “debt brake,” facilitating additional borrowing.

A special fund of 500 billion euros was established for infrastructure and climate projects, with 100 billion euros allocated directly to the climate and transformation fund. Defense spending exceeding one percent of GDP will also be excluded from debt limits. The measure received broad support.

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