German court clears path for Merz’s massive borrowing plans

BERLIN (Reuters) – Germany’s constitutional court threw out several challenges by opposition parties against a plan by the prospective coalition government to push a massive public spending initiative through the outgoing parliament, it said on Friday.

The decision paves the way for parliament to convene next week to consider the proposals of conservative election winner Friedrich Merz to reform constitutional debt rules and set up a 500-billion-euro ($545-billion) infrastructure fund.

Merz’s conservative bloc and the Social Democrats, seeking to form Germany’s next government, have won the support of the Greens to pass the plans with a two-thirds majority in the old parliament.

(Writing by Rachel More; editing by Matthias Williams, Kirsti Knolle)

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