Germany Suspends Constitutional Debt Brake for Defense

The German Bundestag votes with a two-thirds supermajority to suspend the constitutional debt brake (Schuldenbremse) for defense spending — a seismic shift in German fiscal history. A €500 billion extrabudgetary fund is created; defense spending above 1% of GDP is exempted from debt limits. Germany's defense budget is projected to reach 3.5% of GDP by 2029.