The main candidate for German chancellor, Friedrich Merz, said Friday that the crucial support of the Greens was secured for a massive increase in the debt of the State, clearing the way for the outgoing Parliament to approve it next week.
The conservatives of Merz and the Social Democrats, who are in negotiations to form government after the elections last month, had proposed a fund of 500,000 million euros for infrastructure and radical changes in the indebtedness norms to reinforce the defense and reactivate the growth in the largest economy in Europe.
With the support of the greens, they now have the two -thirds majority necessary to approve constitutional amendments, whose vote is scheduled for next week.
Merz has justified the need to boost the package in the outgoing Parliament after the recent turns in the policy of the United States under the presidency of Donald Trump, warning that a hostile Russia and an unreliable washington could leave the exposed continent.
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‘Germany has returned’: Merz ensures key support for the debt agreement
“It is a clear message to our partners (…) But also to the enemies of our freedom: we are able to defend ourselves,” Merz said at a press conference. “Germany has returned. Germany contributes significantly to the defense of freedom and peace in Europe. ”
Once an obstacle has been exceeded, the Constitutional Court must even pronounce on whether a outgoing parliament can approve measures of such transcendence and if legislators have sufficient time to evaluate them thoroughly. A sentence is expected before Tuesday’s vote.
The news of the Merz agreement caused the public debt yields of the euro zone, the shares and the euro, given the expectation that the indebtedness plan promotes the European economy in general.
The German Dax referential earned almost 2%, while medium and small capitalization indexes advanced more than 3% each. The euro showed 0.5%, raising its profits to 5% so far this month.
With Reuters information.
