Friedrich Merz, Germany's likely next chancellor, has unveiled a significant reform to the country’s debt rules, allowing for an increased investment of 500 billion euros in infrastructure and defense over the next 12 years. This reform will exempt spending exceeding 1% of GDP on defense and security from the constitutionally mandated debt brake. Merz emphasizes the importance of this decision in light of rising Russian aggression and changes in US foreign policy, indicating a robust effort by Germany to enhance national security and economic investment after years of fiscal restraint.
The agreement allows Germany to exempt defense and security spending above 1% of GDP from the constitutional debt brake, facilitating a major shift in fiscal policy.
Friedrich Merz emphasized that the debt reform signals Germany's readiness to ensure its own defense amid increasing Russian aggression and uncertainty in US foreign policy.
Collection
[
|
...
]