Germany to change constitution to enable US$110bil defence fund


BERLIN: Germany has agreed to change its constitution to enable for a credit-based particular protection fund of 100 billion euros ($107.35 billion) proposed after Russia’s invasion of Ukraine, the German finance ministry introduced on Sunday.

Germany’s centre-right opposition and ruling coalition with centre-left Social Democrats (SPD), Greens and pro-business Free Democrats (FDP) stated they reached the required two-thirds majority to exempt the protection fund from a constitutional debt brake.

According to sources acquainted with the matter, the negotiations have been led by FDP chief Christian Lindner, SPD’s Defense Minister Christine Lambrecht, Greens chief Annalena Baerbock and the opposition’s vice whip Mathias Middelberg.

The cash is to be used over a number of years to enhance Germany’s common protection price range of round 50 billion euros and enable the nation to meet the NATO goal of spending 2% of its financial output on protection annually.

($1 = 0.9315 euros)- Reuters

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