The issue:

Although still in talks regarding a coalition government with CDU leader Friedrich Merz as Chansellor, the leaders of the conservative Christian Democratic Union (CDU), their Bavarian allies the Christian Social Union (CSU), and the Social Democrats (SPD) went public on Tuesday with an agreement to abandon years of cautious German fiscal policy.

Specifically, the leaders plan to alter the country’s constitutional deficit limit, the so-called debt brake, which limits Germany’s structural deficit to 0.35% of GDP.

This would allow Germany to spend at least an additional €140 billion a year from 2028 – nearly triple the current defence budget.

Furthermore, a new extra-budgetary special fund of €500 billion would be created to be invested into Germany’s infrastructure and the parties want to untie particularly strict debt rules for Germany’s regional states.

Insides:

The scheme is to force these changes before the new Parliament is in session because they know that AfD will not agree and will block this disastrous for German economy plan.

The arrangement is a part of E.U. central new policy to provide 800 billion euros to Ukraine so the war continues.