Incoming chancellor Friedrich Merz seeks to shore up defence, infrastructure
Incoming German Chancellor Friedrich Merz (CDU) plans to recall the old Bundestag to approve €900 billion in borrowing for security and infrastructure spending by temporarily setting aside debt rules. The plan includes boosting defence spending by €500 billion and infrastructure investment by a similar amount, utilizing off-balance sheet instruments to avoid breaching the "debt brake." The SPD supports the plan, and the Bundesbank suggests allowing borrowing up to 1.4% of GDP.
