Greens Propose Separation of Finance Package Amid Political Tensions

Fri 14th Mar, 2025

The Greens party is advocating for a division of the recently agreed financial package between the Union and the SPD, centered around defense spending and infrastructure investments. Fraktionschefin Katharina Dröge emphasized the importance of addressing defense expenditures urgently, suggesting that discussions on infrastructure financing could take place later.

Dröge stated that there is a willingness to collaborate on security issues, highlighting that the differences in opinions could be bridged. However, the SPD is resistant to the idea of separating the two components, expressing concerns that essential social initiatives might be jeopardized.

During a recent meeting, Union Chancellor candidate Friedrich Merz expressed optimism despite the ongoing discussions. He indicated that the leaders from the three parties were negotiating details of the coalition agreement. In prior discussions, they had reached a consensus to relax the debt brake for defense spending and to establish a special fund of 500 billion euros for infrastructure projects.

To implement these necessary constitutional amendments, the coalition requires a two-thirds majority in the Bundestag, which means they need the Greens' support. Dröge criticized the decision to bundle different constitutional amendments into a single law, arguing that there is no logical connection between them, except for a lack of trust between the CDU and SPD.

The Greens have specific reservations regarding the proposed infrastructure funding, fearing that any financial resources allocated might not be directed toward climate protection, modernization of the economy, digitization, or energy grid improvements, but rather toward tax cuts. Party chairperson Franziska Brantner pointed out planned tax incentives for agricultural diesel and reductions in restaurant VAT as troubling signs.

On the other hand, some members of the Union have expressed sympathy for the Greens' concerns, acknowledging that the SPD's concessions may not align with their principles. CDU General Secretary Carsten Linnemann admitted that the Greens raise valid points.

In response, Merz proposed that funds from the infrastructure special asset could also be allocated for climate and transformation initiatives. He assured that this would be conducted in compliance with constitutional regulations, thereby advancing climate protection efforts.

Schleswig-Holstein's Prime Minister, Daniel Günther, who collaborates with the Greens in his state, urged for a consensus, praising the Greens' reasonable proposals and advocating for a timely agreement.

The ongoing disputes pose a potential risk for Merz as the Union's chancellor candidate. However, he remains hopeful that an agreement can be reached in the upcoming week, emphasizing the importance of collaboration and dialogue among the parties involved.


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