The German Bundestag approved a landmark constitutional amendment on Tuesday that will allow up to €500 billion in new debt for defense and infrastructure investments, marking a significant shift in the country's fiscal policy [1][2].

The measure passed with 513 votes in favor and 207 against, exceeding the required two-thirds majority of 489 votes [2]. The coalition of CDU/CSU, SPD, and Greens supported the package, which must still clear the Bundesrat on Friday.

The legislation creates two major funding mechanisms:

A relaxation of debt limits for defense spending exceeding 1% of GDP (approximately €44 billion)A €500 billion 'special fund' for infrastructure and climate projects, including €100 billion earmarked for regional governments [2][4]

CDU leader Friedrich Merz, likely the next Chancellor, defended the package as essential for national security. 'There is a war being waged against our country daily,' Merz said, referencing Russian aggression [3].

SPD parliamentary leader Lars Klingbeil emphasized the domestic benefits: 'This package will ease the burden on the majority of people in their daily lives' [4].

Critics, including the FDP and AfD, strongly opposed the measure. FDP faction leader Christian Dürr warned it would lead to 'unlimited debt-making' [1]. Several FDP state parliamentary groups announced plans to challenge the package in state constitutional courts [3].

The legislation requires federal states to maintain balanced budgets but allows them collective borrowing up to 0.35% of GDP. Bavaria's CSU and Free Voters agreed Monday to support the package in the Bundesrat [2].