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Germany's ruling coalition has reached an agreement to reinstate restrictions on new borrowing next year, following a recent court ruling that struck down a critical funding tool. The agreement includes measures such as cuts to climate investment and fossil-fuel subsidies, an increase in the carbon price, and a strategy to sell assets. However, the agreement is provisional and lacks specific details. The new budget plan will need to be approved by lawmakers and is not expected to be finalized by the end of the year. Chancellor Olaf Scholz emphasized that the government will continue to prioritize climate transition, social cohesion, and support for Ukraine's defense, but acknowledged the need for budget cuts and savings. The government will reassess funds for Ukraine and may lift the borrowing restrictions in 2024 if necessary. The court ruling has sparked calls for an overhaul of Germany's borrowing rules to support investments in a more sustainable and technologically advanced economy. German industry groups have expressed relief at the resolution of the budget standoff, but have criticized certain decisions, such as the abolition of subsidies for grid fees. [Extracted from the article]

Germany has allocated at least 44 billion euros ($48 billion) for the purchase of modern armaments in an effort to strengthen its military following Russia's invasion of Ukraine. The majority of the funds will be used to acquire warplanes and ammunition, with 35 Lockheed Martin Corp. F-35 warplanes and 15 Eurofighters being purchased for a combined cost of 15 billion euros. An additional 20 billion euros will be allocated for ammunition, while over 9 billion euros will go towards cargo helicopters and armored personnel carriers. This spending is part of Germany's urgent push to enhance its armed forces in response to the changing security landscape. [Extracted from the article]