Merz's Debt Strategy Under Scrutiny

Friedrich Merz and the CDU/CSU's decision to pursue a debt-financed investment strategy has sparked significant debate. The plan includes a 500-billion-euro special fund for infrastructure, bypassing the traditional budget to finance defense spending.

Critics argue that this move violates constitutional principles and abandons election promises. The SPD is under pressure to demonstrate its commitment to state responsibility, particularly in managing illegal migration.

Meanwhile, the AfD challenges the legality of Merz's debt package, arguing it misuses constitutional provisions. Markus Aiwanger of the Free Voters may further complicate matters by potentially blocking the initiative in the Bundesrat.

The decision could significantly increase Germany's debt ratio, drawing parallels with Greece's fiscal policies. As the CDU/CSU navigates these political challenges, the coalition's stability hangs in the balance, with potential implications for Germany's financial future.