Germany to amend constitution to allow $110 billion defense fund

The German finance ministry stated on Sunday that Germany has agreed to amend its constitution to allow for a credit-based special defense fund of 100 billion euros ($107.35 billion) suggested in the aftermath of Russia’s invasion of Ukraine.

Germany’s center-right opposition and ruling coalition, which includes the center-left Social Democrats (SPD), Greens, and pro-business Free Democrats (FDP), have announced that they have secured the requisite two-thirds majority to exclude the defense fund from a constitutional debt brake.

The conversations were conducted by FDP leader Christian Lindner, SPD Defense Minister Christine Lambrecht, Greens leader Annalena Baerbock, and opposition vice whip Mathias Middelberg, according to persons acquainted with the situation.

The funds will be utilized over several years to enhance Germany’s normal military budget of roughly 50 billion euros, allowing the country to fulfill NATO’s annual defense expenditure objective of 2% of GDP.

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