Exclusive-Germany weighs special funds for defence and infrastructure, sources say


FILE PHOTO: Christian Democratic Union (CDU) party leader and Chancellor-in-waiting Friedrich Merz speaks on the day he campaigns for the upcoming state election in Hamburg, Germany, February 28, 2025. REUTERS/Fabian Bimmer/File Photo

BERLIN (Reuters) -The parties in talks to form Germany's new government are considering quickly setting up two special funds potentially worth hundreds of billions of euros, one for defence and a second for infrastructure, three people with knowledge of the matter told Reuters.

Economists advising the parties that will likely form a new government coalition estimate around 400 billion euros ($415 billion) are needed for the defence fund and 400 billion to 500 billion euros for the infrastructure fund, the people said.

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