Debt and defence headache for Merz after AfD and far left make gains

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German elections Friedrich Merz causes serious obstacles to promote defense spending in Europe’s largest nation, after the parties oppose Ukraine’s arms have provided sufficient places to prevent the amount of society.

Merz had announced the absolute, which was reformed by the German “debt brake” to invest in poorly necessary infrastructure investments and European democracies to raise European democracies (CDU).

But the remote alternative to Germany (AFD) and heavy left Link has gathered in the German parliament from 210 places for the “Block Minority”.

It gives them the opportunity to prevent any changes in the German debt brake in 2009. By limiting the rule set out in the Constitution, limiting the government to keep the borrowing and keep the structural deficit by 0.35 percent of GDP.

The same situation applies to the establishment of a special balance of the special balance, such as the up to 100 billion baskets, which took place by Chancellor Olaf Scholts, in 2022, after the expulsion of Vladimir Putin, the renovation of the German Armed Forces.

The Chief Economist of Beniberg Bank warns that the result of Sunday could create serious headaches for Mis. “At one time, when it is very important to spend on military and Ukraine and relieve the tax burden for employees and firms, Germany can fight to find it,” he said.

“Failure to bend military spending could Germany join in deep difficulties with its NATO partners. By wearing US President Donald Trump, it will increase the risk of US-EU trade war, “Schmiding added.

Jan Tachau, which covers Germany and European defense in the Eurasia Group, said: A number of a number is a mass problem. “

Economists have warned that without the creation of a non-debt brake or the establishment of a special extra-budgetary fund, it will be impossible to finance tens of billions of euros Additional investments are needed urgently In the largest economy of the eurozone. This includes money divided into transport and communication infrastructure, as well as a much higher defense budget as a result of Ukrainian invasion.

The scale of the challenge was complicated by the return of Trump to the White House, the launch of peace talks with Russia and the threats of the US security guarantees from Europe to a number.

Although Merz said that he believes that he can find funds for investment financing Payments for soothing welfare And promoting economic growth, many analysts do not believe that such measures will be enough.

If Merz decides to transform the debt brake, it is possible, as part of the agreement with the Solt Social-Democratic Party and the Greens, both support reforms. Location:

The AFD, which provides the graduation end, and almost 21 percent of the vote, supports higher defense costs, but it is sharp against Ukraine’s armament and the debt brake is against. Merz also ruled out any form of direct cooperation with Far-Right Party.

Die Linke, which has completed almost 9 percent, supports debt brake reforms, but persistently opposes Ukraine’s military support and higher costs on German armed forces.

Jensss Sedekum of International Economics of the University of Jensss at Düsseldor Heine University and a supporter of debt brake reforms described the situation as “it is difficult to negotiate, but not impossible.”

He said that it is possible that it is possible to negotiate the deal with the Martian Linger, creating a special civil infrastructure fund for the use of savings from a regular budget.

“The problem is that they will ask for a price,” he said about Die Linke. He said that Merz may also stand inside his strong opposition party to deal with a heavy left death of Linke.

Some analysts, including Bentyberg Schmedning, claim that Moss may suspend the debt brake, declaring a national emergency, maybe in Ukraine’s serious deterioration.

But such a step will allow only a limited increase in costs of the established period. It would also risk by the German Constitutional Court, which in 2023 Exploded 60 billion euro pit At the federal budget, after ruling the use of the Emergency Emergency Emergency Emergency Measures to pay for a green transition.

“In the easiest constellation, it would be possible to have a majority of CDU, social-democrats and gainers and implement the fiscal policy that says Germany,” Sagh said. “Now you need to tweak and turns and improvements.”