Abstract
The exploratory coalition talks have led to an agreement on the financing of infrastructure and defence. The agreement preserves the debt ceiling of the Basic Law in place and at the same time circumvents it with the help of credit-financed special funds and exemption clauses. This raises the question of the extent to which the legal framework permits an increase in national debt. Limits arise from EU law on the stability of the internal market, the budget and federal financial order in Germany and the constitutional requirements for the proportionality of tax burdens for debt repayment. The necessary measures in the interest of national security can be implemented in the short term with national or European-coordinated instruments. In the medium term, however, a reform of the federal financial system is necessary. In addition, a more efficient financial and regulatory policy can create scope for public and private investment.