The 500 billion euro spending plan is expected to be approved today in the lower house of the parliament in Germany. The bill will transfer hundreds of billions of euros to the economy. The lower house of the parliament in Germany, which has the largest economy in Europe, will vote today on the massive borrowing package and constitutional amendment to stimulate the economy and increase military spending. Friedrich Merz, expected to be the prime minister of the new government, reached an agreement with the Green Party on Friday, and the German Constitutional Court rejected objections to this plan yesterday. If the borrowing package and constitutional amendment are approved in today’s vote, it is expected to be endorsed by the upper house of the parliament on Friday. INFRASTRUCTURE FUND The approximately 500 billion euro infrastructure fund to be spent over a promised period of 12 years will allocate 100 billion euros, as requested by the Greens, to climate and economic transformation. The remaining 300 billion euros in the fund will be allocated to federal government infrastructure investments of 100 billion euros, and state government infrastructure investments of 100 billion euros. FINANCIAL ROOM FOR STATES In addition to the 100 billion euros in the infrastructure fund, each of the 16 federal states in Germany will be allowed to have additional spending of 16 billion euros by giving them a structural deficit of up to 0.35% of their economic output, similar to the federal government. According to current laws, states in Germany are not allowed to take on debt. DEFENSE SPENDING Changes will be made to the “debt brake” that constitutionally limits public borrowing to 0.35% of the gross domestic product (GDP) to exempt defense spending exceeding 1% of GDP. The definition of defense spending includes civil security, intelligence, and assistance to countries under illegitimate attacks. SUPPORT FOR UKRAINE The vote on the 3 billion euro military aid that Germany will provide to Ukraine against the Russian invasion is expected to take place next week.