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German court clears path for Merz's massive borrowing plans

Published by Global Banking & Finance Review

Posted on March 14, 2025

1 min read

· Last updated: January 24, 2026

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BERLIN (Reuters) - Germany's constitutional court threw out several challenges by opposition parties against a plan by the prospective coalition government to push a massive public spending initiative

German Court Approves Path for Merz's Borrowing Plans

BERLIN (Reuters) - Germany's constitutional court threw out several challenges by opposition parties against a plan by the prospective coalition government to push a massive public spending initiative through the outgoing parliament, it said on Friday.

The decision paves the way for parliament to convene next week to consider the proposals of conservative election winner Friedrich Merz to reform constitutional debt rules and set up a 500-billion-euro ($545-billion) infrastructure fund.

Merz's conservative bloc and the Social Democrats, seeking to form Germany's next government, have won the support of the Greens to pass the plans with a two-thirds majority in the old parliament.

(Writing by Rachel More; editing by Matthias Williams, Kirsti Knolle)

Key Takeaways

  • Germany's constitutional court dismissed opposition challenges.
  • The plan includes a 500-billion-euro infrastructure fund.
  • Friedrich Merz aims to reform constitutional debt rules.
  • The coalition has the support of the Greens.
  • Parliament to discuss the proposals next week.

Frequently Asked Questions

What is the main topic?
The article discusses Germany's court approval of Merz's borrowing plans, including a 500-billion-euro infrastructure fund.
What does the plan involve?
The plan involves reforming constitutional debt rules and setting up a 500-billion-euro infrastructure fund.
Who supports the borrowing plans?
The conservative bloc, Social Democrats, and the Greens support the borrowing plans.

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