EURUSD plummets as a German Greens Party official urges elected party members to vote against the debt brake relief bill proposed last week by Chancellor-designate Friedrich Merz.
The incoming CDU/CSU-SPD coalition lacks the required two-thirds majority in the Bundestag to pass the law without support from other parties. The Greens’ Katharina Dröge stated, "If the CDU and SPD want our backing, they must show that investment goes towards climate and the country."
Friedrich Merz is pushing for a €500 billion special fund for infrastructure and defense by loosening the country's constitutional "debt brake" with support from CDU/CSU and SPD. However, the proposal faces urgency due to upcoming parliamentary changes, opposition from AfD and The Left, and concerns over fiscal discipline, despite strong public support for increased defense spending.
Source: xStation5
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