Germany’s potential fiscal U-turn could have a significant impact on the struggling economy and European defense, with plans to increase defense spending and create a 500 billion euro infrastructure fund. The proposed changes to the debt brake would require a two-thirds majority in parliament, which could be achieved soon but may become more challenging once the new parliament convenes later this month. A vote on the constitutional amendments could take place within the week, signaling a potential historic shift in Germany’s economic and defense policies.
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