The German Bundesrat approved a landmark €500 billion financing package on March 22, 2025, marking a significant shift in the country's fiscal policy through constitutional amendments. The measure passed with 53 of 69 possible votes, exceeding the required two-thirds majority of 46 votes [1].

The approved package includes three major components:

A modification to the debt brake rules, exempting defense spending above 1% of GDP from debt calculationsAuthorization for states to take on debt up to 0.35% of GDP annuallyCreation of a €500 billion special fund for infrastructure and climate protection through 2037 [1][2]

Four states abstained or voted against the package: Brandenburg and Thüringen (where BSW is part of the coalition), and Rheinland-Pfalz and Sachsen-Anhalt (where FDP is in government). Notable support came from Bremen and Mecklenburg-Vorpommern, despite Left Party participation in their governments [1].

Bavaria, commanding six crucial votes, ultimately supported the package after initial resistance from coalition partner Free Voters. The state secured special conditions, including a protocol statement regarding the interpretation of climate neutrality in the constitution [2].

The FDP has announced legal challenges in several states, arguing the changes violate state constitutional autonomy. The party's state factions in North Rhine-Westphalia, Hessen, Baden-Württemberg, and Bremen plan to file suits with their respective constitutional courts [3].

The package now awaits final approval from Federal President Frank-Walter Steinmeier, expected next week. His office's legal team has already begun reviewing the constitutional compliance of the changes [1].