Merz has paid a high price to pass Germany’s spending package
Spectator (UK)MAR 20
Germany Breaks Debt Rules for Defense Spending Boost
Above: Chancellor-designate and CDU leader Friedrich Merz speaks before a vote on Basic Law revisions in Berlin on March 18, 2025. The revisions will ease federal debt constraints and allow large-scale defense expenditure. Image copyright: Sean Gallup/Staff/Getty Images News via Getty Images
The Spin
Pro-establishment narrative
The fiscal reforms are a vital and historic step toward modernizing Germany's military capabilities and infrastructure, as well as enhancing European security independence. This is especially important in light of Russia's aggressive actions and the uncertainty surrounding US support. The reform package will stimulate economic growth, create jobs, and help Germany fulfill its NATO commitments while also investing in essential climate protection measures.
Establishment-critical narrative
The massive borrowing package goes against the principles of fiscal responsibility and undermines voter trust, as Merz campaigned on the promise of upholding debt restrictions before the election. The rushed process in the outgoing parliament diminishes democratic legitimacy and places a heavy debt burden on future generations without addressing the necessary structural reforms.