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Fortune
Fortune
Ryan Hogg

'Germany is back': Country agrees bumper $1.3 trillion spending package to revive economy

German designated chancellor and leader of the German Christian Democrats (CDU) Friedrich Merz speaks to the media the day after the Hamburg city-state election on March 03, 2025 in Berlin, Germany. Merz is under pressure to negotiate the formation of the next federal government coalition quickly in order to help strengthen Europe's position over defence and its relationship to the USA. (Credit: Sean Gallup/Getty Images)

Germany finally unveiled a plan that could address years of economic decline and the war in Ukraine as the country announced plans to change its constitution and abandon its long-standing commitment to fiscal prudence.

The CDU/CSU and SPD parties agreed to a mammoth spending package on Tuesday, the headline of which was a €500 billion ($535 billion) fund over 10 years dedicated to upgrading German infrastructure, including across transport, energy, and digitization.

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