Tag #European Union Debt

How does the proposed solution to fund the modernization efforts challenge existing German fiscal rules, and what are the potential short-term political consequences?

The need for €130 billion over four years for immediate modernization, and an estimated €400 billion for Bundeswehr upgrades alone, along with €500 billion for infrastructure, necessitates a deviation from Germany's "Schuldenbremse" (debt brake). This rule, enshrined in the German constitution, limits government spending to income. The proposed solution involves exempting defense spending exceeding 1% of GDP and creating a €500 billion infrastructure fund.