German conservatives and Social Democrats have held talks to form a coalition, "Reuters" reported, News.bg reports.
Friedrich Merz, leader of the Christian Democratic Union (CDU), which won the elections in Germany on February 23, is seeking to form a coalition with Olaf Scholz's Social Democratic Party (SPD) by Easter.
At the same time, both parties are discussing the possibility of pushing through special programs for extra-budgetary loans in the current parliament.
According to sources familiar with the matter, the CDU and SPD are considering allocating special funds for defense and infrastructure. Economists in both parties are proposing investments of 400 billion euros to modernize the German army and 500 billion euros to improve infrastructure – a total amount amounting to 20% of German GDP.
Manuela Schwesig, a member of the SPD, stressed that Germany must strengthen the Bundeswehr, but also provide sufficient funds for economic development and other key sectors.