Germany’s Greens have announced that they will not support the current government’s plans to relax debt restrictions on defense spending and establish a large infrastructure investment fund. The Greens’ decision comes as conservative leader Friedrich Merz seeks to form a coalition government with the center-left Social Democrats, following last month’s German election.
The proposed plans include exempting some defense spending from Germany’s strict debt rules and creating a 500 billion euro fund for infrastructure investment over the next decade. However, these initiatives require a two-thirds majority in parliament due to Germany’s constitutional limits on borrowing. The outgoing government is aiming to pass these measures in the current parliament session, as the newly elected chamber is less likely to support them.
The Greens, whose backing is crucial for the coalition’s success, have expressed concerns about the proposed infrastructure fund, arguing that it may not focus on essential investments. They have long advocated for reforms to facilitate economic growth and address climate change. The Greens’ parliamentary group has recommended rejecting the plans put forth by the prospective coalition partners.
Discussions are ongoing between the government parties and the Greens, as well as the pro-business Free Democrats, who have also raised objections to increasing debt levels. Further talks will determine the outcome of these negotiations.
