Germany is embroiled in a heated debate over the reform of its debt brake.

The Bundestag recently approved a constitutional amendment to loosen borrowing limits, enabling a €500 billion investment in infrastructure and defense.

However, the reform faces resistance in the Bundesrat, where a two-thirds majority is required.

The FDP has been vocal in opposing the move, citing threats to federalism and democratic principles.

In Hessen, the FDP's legal challenge was dismissed, allowing the state to support the reform.

With key states like Bavaria now on board, the reform's approval seems likely, but dissent from other regions highlights ongoing tensions over fiscal policy and governance.