German Bundestag set to discuss debt reform proposals on March 13

Germany's Bundestag is set to open a crucial debate on March 13 regarding proposed reforms to the country's debt policies, according to two parliamentary sources (via Reuters).

The new plans, which include a substantial increase in infrastructure spending and alterations to borrowing rules, aim to increase funding for national defence. Parliamentary sources revealed that the discussions will pave the way for a vote on March 18, with the country's conservatives and the centre-left SPD joining forces to push for these reforms.

However, securing the required two-thirds majority will not be straightforward, especially with the Greens demanding further negotiations before lending their support, and the pro-business FDP backing defence spending but rejecting the creation of a dedicated infrastructure fund. For now, it remains to be seen how the situation will unfold.