A debt brake has become the hottest potato in Berlin’s government negotiations. The new government needs the support of both waxes to take out debt.
Berlin Where to get more money?
It has become the hottest question after the German elections. Germany has been in recession for more than two years and there is no sight to be in sight.
The economy should start again and, above all, find money for defense investments.
The President of the Christian Democratic Government Friedrich with Merz However, there is a big problem. It’s a debt brake.
Wingo parties as a scale
The German Bundestag ended in the financial crisis of the so -called debt brake, which limits the annual budget to 0.35 % of GDP. The rule is significantly stricter than the EU requirement for a deficit of less than 3 %.
Thus, the amount of public debt is anchored in the Constitution and requires a constitutional change. Change, on the other hand, requires a two -thirds majority during the Bundestag.
Merz’s CDU and any new government partner Social Democrats’ SPD do not. In order to support the decision, the AFD of the far -right and the Die Linke of the Left.
Die Linke has already stated that it does not agree to take on debt only for defense expenditure. It will only come if the debt brake is completely removed from the law.
CDU and its Bavarian sister CSU will not agree to end the entire debt brake because they then fear that they will give an open proxy to the debt.
AfD again refuses to all debt likes.
EUR 200 billion more to defense
The situation is doing irony The fact that Merz himself opposed the establishment of a special fund for the German Defense Forces during the election. Now he has to fight for such creation.
Germany is speculationthat the armed forces would plan a fund of EUR 200 billion.
According to media information, Merz is currently negotiating with the Greens, SPD and Liberals about whether the decision of the fund could be made during the old parliamentary period. This, too, requires a two -thirds majority.
The Liberal Party FPD did not get places for the upcoming Bundestag, but sits in the Old Parliament.