Debt Plan Faces Political Standoff

Published: 2025-03-15

Germany's proposed debt package, spearheaded by the Union and SPD, faces significant hurdles as political divisions deepen.

Hubert Aiwanger, leader of the Free Voters, has tied his party's support to strict conditions, including adherence to the debt brake and cuts in social spending.

This stance threatens the package's approval in the Bundesrat, where a two-thirds majority is required.

Meanwhile, 13 Free Voter district leaders have broken ranks, backing the plan for its potential to address urgent infrastructure needs.

The package, which includes a €500 billion investment fund, is seen as critical for economic recovery.

However, internal party conflicts and opposition from other political factions leave its future uncertain.