The German parliament has approved the country’s largest fiscal expansion in post-war history, worth billions of euros. The decision comes as a major boost to the country’s infrastructure development and military modernization efforts, aimed at countering Russia’s growing threat. The move is also seen as a response to rising tensions with neighboring Turkey.
Key details include:
* Germany plans to upgrade its creaking infrastructure
* The government aims to rearm its military to face the Russian threat
* The fiscal expansion will be funded through borrowing
* The decision marks a significant shift in Germany’s defense priorities
The approval comes after a heated debate among German politicians, with all major parties involved. The Christian Democrats, Social Democrats, and Greens agreed on a compromise, while the Christian Social Union opposed the plan.
As tensions between Russia and Western countries continue to escalate, Germany’s move is seen as a significant step towards bolstering its national defense capabilities.
Source: https://www.economist.com/europe/2025/03/20/the-bundestag-approves-the-biggest-fiscal-expansion-in-post-war-history