German Court Approves Merz’s Massive Borrowing Plans

Germany’s constitutional court approved Merz’s prospective coalition government to push a massive public spending initiative and borrowing plans by blocking several challenges by opposition parties.

The decision paves the way for parliament to convene next week to consider the proposals of conservative election winner Friedrich Merz to reform constitutional debt rules and set up a 500-billion-euro ($545-billion) infrastructure fund.

Merz’s conservative bloc and the Social Democrats, seeking to form Germany’s next government, have won the support of the Greens to pass the plans with a two-thirds majority in the old parliament.

Reuters/Ejiofor Ezeifeoma