Germany's CDU/CSU and SPD have agreed on a historic financial package to address defense and infrastructure needs.

The plan includes a €500 billion fund for infrastructure improvements over ten years and a relaxation of the debt brake for defense spending.

CDU leader Friedrich Merz emphasized the urgency of these measures, citing global instability and the need for swift action.

The proposal requires constitutional changes and a two-thirds majority in parliament.

Critics, including the head of the Junge Union, argue the plan burdens future generations with debt instead of pursuing reforms.

The agreement comes amid shifting U.

S. policies on Ukraine, adding pressure on Europe to bolster its own defense capabilities.