Defense and Infrastructure: Germany voted this Tuesday project this Tuesday on historical growth in cost
The Baxa Chamber of the German Parliament on Tuesday, 18, A Proposal to provide a significant increase in government loans. The plan, if approved, can increase the largest economy of Europe and excite the growth throughout the region, even in the face of trade tensions with the United States. Voting will be held after the elections between the Conservatives and Social Democrats (EDD), which is trying to set up a centrifting coalition after last month’s election.
This proposal contains the creation of A 500 billion euros (US $ 546.05 billion) Financial assistance to projects Infrastructure And the flexibility of constitutional loan rules, allows more investments Safety. If the law is accepted, it refers to a major change in the economic policies of Germany, which represents the end of the high tax conservative in the country for decades. This measurement caused an increase in eurozone income and the euro’s admiration.
Essential and Conservative leaders are confident that the need to accept the reform, which requires a two -thirds parliament support. Freedrich MergeConservative party leader DemocracyAnd the next Chancellor, he said, “We are confident that we will reach a majority of two -thirds.” The three major parties involved in the negotiations – the CDU, Essential and Greens – have a security margin of about 30 votes to get the measurement approval.
Voting was marked until afternoon after the morning discussion. If the proposal is approved in the Biksa Chamber, it will still have to cross the tall room, which represents 16 states in Germany. However, the main obstacle to approval seems to have exceeded Monday Bavarian free voters Agreed to support the project.
Hasty to approve
Conservatives and Emphadis want to accept the law before the formation of a new low camera, which begins on March 25. They are afraid that the project has a lot of presence and a lot of future Congress.
Merz upheld the necessity, highlighting the need for changes in US policies, especially with the Presidency Donald TrumpAnd warning to enemy Russia and unpredictable American government. For him, Europe is not threatened.
Reversal of debt brake
If approved, the tax version indicates the main retreat of SO -Called Break debtIt limits the ability to respond to contemporary economic challenges, which were implemented after the 2008 financial crisis. However, this change has created criticism in Merz’s own party, not to rise in the campaign and the opponents have accused the opponents a “electoral fraud” for announcing a change in the financial attitude shortly after the success of the ballot box.
Economists have warned that the cost increase in the German economy, which has been contracted for two consecutive years, is not enough to ensure steady growth. Merz accepted the challenges and said on the X (previously Twitter) post, “The problems of tomorrow’s decision are not solved.” The politician has emphasized the need for the coalition agreement to deal with the economic difficulties of the country and come forward in the necessary reforms.
Citizens gave us a government order on February 23 – we face it. With tomorrow’s decision, problems will not be solved alone. The challenges we are facing should be resolved now. We are …
– Freedrich Merge (@_freidrichmerz) March 17, 2025
Warfare State – State focused on war
The protection of Records records in protection In Germany it is accompanied by Washington. Gradually, left and right acronins, traditionally considered terrorist, oppose reorganization. This is a turn that is captured as a change Welfare State (Welfare State in recent decades recognized Europe) Warfare State (The state is focused on war).
From a political perspective, this may be a risk to central parties. “What is a unique opportunity that is not considered by the century parties is that their preparations for Armagedon are unnecessary and are very expensive for taxpayers and a vandalized public services,” said Anatol Kaletky, Volunteer and Chief Economist in a report.
Meanwhile, Kalsky continues to be the opportunity to demonstrate themselves as a reasonable lawyer of taxpayers and welfare state when both of the left and right are against reorganization.
Can cause a significant gross economic impact on change Germany, It has since 2009, follows the vision grout Constitutional debt breakThis limits 0.35% of the deficits in the GDP adjusted to the cyclone. Overcome interviews for a series of reports for recent German electionMany local entrepreneurs believe that the controversy between Russia and Ukraine appears at the expensive intersection after the terrible competition of low US support and Chinese products, which will change the impact on the economy.
In recent years, Europe’s largest economy has entered the recession in the last two years, the IMF said. For 2025, the fund estimated a modest high, 0.3%.
“Now, to create a higher tax space for new defense cost, Germany has a significant deficit than the Germany’s debt brake, the” cycle adjusted “GDP.
For the driveway, the direction of the economy is now “not clear”. “And her balanced budget is far away from paddles,” the report said. “Once the precedent is established for further economic ease to allow emergency defense costs, political pressures become very strong Climate changeWere, and,, and,, and,, and,.. Infrastructure And other ‘existential’ challenges. “
In short, if Germany begins to review his tax theories, write the Wakal, European Commission “It will definitely continue with more simple descriptions of the EU tax regulations.”
Change is positive for markets. The relaxation of tax restrictions reduces the need for artificially low interest rates in support of the economy. If European contraction leaves economic policies, Euro and European assets, especially in the financial sector, may be valuable, assessing the residence of the analysis.
“Returning to positive real interest rates in Europe is optimistic for euro, European actions, especially in the financial sector and overall capital allocation. Even though the markets are already moving in this direction in this direction, the current evaluation reflects this scenario.” “If it really exercises, there will be a lot of praise for euro and many European assets.”
