Likely next chancellor needs two-thirds majority to back €500bn infrastructure fund and relaxation of debt rulesGermany’s likely next chancellor is to face a key vote on plans to unlock a record level of state borrowing, which he argues is necessary to boost the country’s military spending and inject growth into its ailing economy.Ahead of the crucial Bundestag vote on Tuesday, Friedrich Merz has faced a barrage of complaints from the opposition and from within his own ranks that he is not coupling the historic levels of spending planned – as much as €1tn (£840bn) – to demands for reform. Continue reading...
The German Bundestag is preparing to vote on a historic borrowing package championed by Friedrich Merz to boost military spending and stimulate the economy. The plan involves unlocking record state borrowing, relaxing debt rules, and establishing a €500 billion infrastructure fund. Merz secured Green support by earmarking €100 billion for climate and economic transformation. The vote is a key test for Merz, facing opposition and internal dissent, but financial markets have reacted positively to the plan.
