The German Bundestag just made a historic decision today. A decision that will finally break Germany’s debt brake. This policy has been in place since 2009 and has helped reduce the country’s public debt over the past 10 years or so.

An incoming government wants to borrow much more to revamp the economy and rebuild the military. That means a change in the country’s Constitution — and its culture.

The German parliament has voted in favour of a huge fiscal package and changes to the debt brake. Click to read.

Friedrich Merz passed a major test as the outgoing parliament voted 513-207 in its final meeting to approve the plans.

Germany's parliament approved plans for a massive spending surge on Tuesday, throwing off decades of fiscal conservatism in hopes of reviving economic growth and scaling up military spending for a new era of European collective defence.

Germany's lower house of parliament is set to vote on Tuesday on a massive surge in borrowing that could boost Europe's largest economy and stimulate growth across the region, even as it faces trade tensions with top partner the United States.