On March 22, local time, German President Steinmeier officially signed an amendment to the Basic Law, clearing the last hurdle for the German government’s massive fiscal plan to finance through new debt. This massive fiscal plan will provide hundreds of billions of euros in funding for defense, infrastructure, and climate investments. This decision marks a significant turning point in Germany’s fiscal policy. According to the amendment, the German government will relax the debt ceiling set in the Basic Law in specific areas, allowing new debt to be used for defense, civil defense, intelligence agencies, and cybersecurity construction. This means that any related expenditures exceeding 1% of GDP can be financed by the government through borrowing. Based on the current economic scale, this amount is expected to exceed 44 billion euros by 2025. In addition, the government will establish a special fund of up to 500 billion euros, which is not subject to the debt ceiling and will mainly be used to repair Germany’s aging infrastructure. (CCTV)
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