German court clears path for Merz's massive borrowing plans

German chancellor-in-waiting Merz addresses the media in Berlin

German Chancellor-in-waiting Friedrich Merz attends a press conference after he reached an agreement with the Greens on a massive increase in state borrowing just days ahead of a parliamentary vote next week, in Berlin, Germany, March 14, 2025. REUTERS/Axel Schmidt

Source: 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.

This article was produced by Reuters news agency. It has not been edited by Global South World.

By Reuters