Germany's Greens threaten to block plan to ease debt brake

Germany's Greens on Monday threatened to block a plan to ease the debt brake and funnel hundreds of billions of euros to defense and infrastructure spending.

The plan put forward by Germany's likely next chancellor, Friedrich Merz of the conservative Christian Democratic Union (CDU), is also supported by its likely junior coalition partner, the center-left Social Democratic Party (SPD).

It would create a €500 billion ($542 billion) special fund for infrastructure and ease borrowing limits for defense.

On Monday, Greens parliamentary co-leaders Katharina Dröge and Britta Hasselmann said they would encourage their party to vote against the package.

They accused the CDU and SPD of creating a "treasure chest" to fund their political priorities, including tax cuts.

"Whoever wants our approval for more investment must also show that it is really about more investment in climate protection, more investment in the economy in this country," Dröge told reporters.

CDU, SPD hopeful to continue negotiations

The debt brake is enshrined in Germany's constitution. Changing it would require two thirds of votes in parliament, with support from the Greens seen as the most obvious way forward.

The general secretary of the CDU, Carsten Linnemann, described the ideas put forward by the Greens as "constructive proposals."

SPD co-leader Lars Klingbeil also said he is "not giving up confidence that this can succeed."

Meanwhile, Germany's outgoing finance minister, Jörg Kukies, also from the SPD, said the Greens raised "legitimate points" but hoped an agreement would be found.

Edited by: Natalie Muller