German President Frank-Walter Steinmeier signed a constitutional amendment on Saturday that enables the federal government to move forward with a massive spending package targeting defense, construction, and climate initiatives.
The amendment, previously approved by both the Bundestag (Federal Parliament) and the Bundesrat (Federal Council), was signed into law following a thorough constitutional review, confirming its alignment with Germany’s fiscal framework.
This legal change allows the government to bypass traditional debt-limitation rules to fund critical national projects, deemed necessary in light of rising security and environmental challenges.
The law is set to be published in the Federal Gazette and will take effect immediately thereafter, paving the way for expansive public investment plans this year.