Germany’s next potential chancellor, Friedrich Merz, is set to face a critical vote on plans to authorize an unprecedented level of state borrowing. This move, aimed to bolster military spending and save the nation’s struggling economy, has sparked controversy both within and outside Merz’s own party circles. Critics argue that the proposed spending, reaching as high as €1 trillion (£840 billion), should be tethered to demands for comprehensive reforms. Additionally, Merz is awaiting a court ruling concerning claims by the right-wing Alternative für Deutschland (AfD) party that the legislation was introduced too hastily, limiting thorough examination by either lawmakers or external experts. Merz’s strategy includes establishing a €500 billion infrastructure fund and easing debt rules, which are currently protected by the constitution, through the outgoing parliament, where his conservative party, along with the Social Democrats (SPD) and the Greens, hold the necessary two-thirds majority needed for approval.

Source: https://www.theguardian.com/world/2025/mar/18/friedrich-merz-bundestag-vote-germany-borrowing-plan