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Germany’s Bundestag is set to vote on a major fiscal package later on Tuesday, which includes changes to long-standing debt policies to enable higher defense spend and a 500 billion euro ($548 billion) infrastructure and climate fund.
More than two thirds of parliament need to support the package in order for it to pass and become enshrined in Germany’s constitution. The law then also needs to be passed by the Bundesrat, a body representing the country’s states, on Friday.
Under the proposed new laws, defense and certain security expenditures above a certain threshold would no longer be subject to the debt brake, which limits how much debt the government can take on and dictates the size of the federal government’s structural budget deficit.