Germany’s next government has agreed to ease constitutional borrowing limits, enabling over €1 trillion ($1.08 trillion) in defense and infrastructure spending. This marks a major policy shift from Germany’s traditionally debt-averse stance, with leaders from the Union bloc and Social Democrats backing the change. The agreement exempts military spending exceeding 1% of GDP from the country’s debt restrictions. Economists predict the move could boost GDP by up to 0.7% over two years, fueling economic growth. The decision reflects Germany’s increasing focus on defense readiness and modernization amid global security concerns.
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