Merz: no immediate debt brake reform, military spending increase uncertain

By Nuray Mustafa
February 26, 2025 09:30
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Reuters

Germany’s likely next chancellor, Friedrich Merz, has ruled out a swift reform of the country’s debt brake and expressed caution over the possibility of securing parliamentary approval for a large-scale military spending boost.

Speaking on Tuesday (February 25), Merz emphasized that changes to Germany’s borrowing limits are not on the agenda in the near future. "It is out of the question that we will reform the debt brake anytime soon. If it happens at all, it will require extensive and difficult work," he stated.

With Donald Trump’s return to the White House raising concerns over European defense capabilities, discussions on increasing Germany’s military budget have gained urgency. The government is reportedly considering a special fund for this purpose, with sources within Merz’s party suggesting the amount could reach hundreds of billions of euros.

However, when asked whether this could be pushed through the outgoing parliament, Merz remained cautious. "We are talking to each other, but it is far too early to say anything about it now. I see it as very difficult at the moment," he said.

Merz, whose conservative bloc won Sunday’s (February 23) national elections but fell short of a majority, now faces challenging coalition talks. With far-right and far-left parties gaining traction, forming a stable government will require careful negotiations.

Despite the uncertainties, Merz reaffirmed his readiness to take on the role of chancellor, stating: "You know that we are prepared to lead such a government. But all this requires a well-negotiated coalition agreement with the SPD. I still believe we can reach a good agreement within a reasonable timeframe and have a functioning majority government in parliament by Easter."

Merz received a standing ovation from members of the CDU and CSU during a parliamentary meeting, signaling strong support from within his party as he prepares for the next phase of government formation.

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