Germany's Bundesrat backs defence, infrastructure and climate package: comment
Germany's second chamber of parliament has voted in favour of investments in defense, infrastructure and climate
By Gareth Redmond-King
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Commenting on the news that Germany's second chamber of parliament, the Bundesrat, has voted in favour of a spending package which loosens borrowing limits and allows billions of euros of investments in defence, infrastructure and climate change [1], Gareth Redmond-King, Head of International Programme at the Energy and Climate Intelligence Unit (ECIU) said:
"Germany has just set a very clear direction for the new government - that strengthening defence, the energy transition and tackling climate change are parts of the same security challenge. Just as the EU has signalled it will do for all states, Germany has voted to change its fiscal rules and enable more flexibility to enable urgent investment in interconnected national, European and global threats.
"The scale of Germany’s investment is considerable in climate alone and the markets are betting on this stimulating economic growth. The UK government has taken a lead on the world stage on both climate change and defence; this has seen UK net zero industries growing 10% in the past year [2], and the shift from gas to renewables boosting UK energy security. With competition to attract these industries, investors will be looking to see how the UK government might respond further."
Notes to editors:
1. https://www.dw.com/en/germany-upper-house-signs-off-on-landmark-debt-reform-plan/a-71992709
2. https://eciu.net/analysis/reports/2025/net-zero-economy-across-the-uk
For more information or for interview requests:
George Smeeton, Head of Communications, ECIU, Tel: 07894 571 153, email: george.smeeton@eciu.net