Germany's Bundestag has approved a historic debt package, marking a significant shift in fiscal policy.

The package, supported by the CDU, SPD, and Greens, includes a €500 billion fund for infrastructure and climate neutrality by 2045. Defense spending exceeding 1% of GDP will now bypass the debt brake, covering areas like cybersecurity and civil protection.

Despite internal dissent, the proposal secured the required two-thirds majority.

Critics, including the FDP, argue the plan risks economic stability, while proponents emphasize its necessity for future generations.

The Bundesrat will vote on the constitutional amendment next.