NewsGermany's coalition pact: Defence boost sparks debt dilemma

Germany's coalition pact: Defence boost sparks debt dilemma

In discussions about forming a coalition government, the CDU/CSU and SPD reached an agreement surprisingly quickly on relaxing financial discipline to strengthen the Bundeswehr and rebuild infrastructure, necessitating a constitutional change. "We are arming ourselves," says the head of the CSU, Markus Söder, as reported by Tagesspiegel, which notes that this statement is a "bullseye."

Germany will increase spending on armaments [in the picture: Friedrich Merz, future chancellor]
Germany will increase spending on armaments [in the picture: Friedrich Merz, future chancellor]
Images source: © East News, Getty Images
Katarzyna Kalus

"The agreement between CDU/CSU and SPD on investments in security and infrastructure is a turning point in the post-war history of Germany," assessed Daniel Friedrich Sturm in "Tagesspiegel." The commentator emphasised that less than ten days after the Bundestag elections, the parties aiming to form a coalition announced a constitutional change, the scale of which was considered unimaginable just a few weeks ago. "Extraordinary times require extraordinary measures," writes Sturm.

"We are arming ourselves," cites CSU leader Markus Söder, and notes that this statement is a "bullseye." A sensible solution is to exempt military spending from the constraints of the "debt brake," which is the constitutional prohibition on increasing debt.

"The planned reform of the debt rules will ensure sufficient funding for the Bundeswehr," writes Daniel Brössler in "Süddeutsche Zeitung." "Germany may decide to increase the military budget to 3.5% of GDP during the NATO summit in June in Brussels. Action must be taken ambitiously. The midwife of the agreement, which is the foundation of the future German government's success, is Donald Trump," he emphasised.

"His destructive activity against the community of Western states and his betrayal of Ukraine are terrible, but they came at an optimal time from the point of view of exploratory talks in Berlin," assessed the commentator. He adds that nobody knows whether NATO in its current form will survive. Only such a coalition ready for the worst can lead Germany through uncertain years. Brössler expressed hope that Green Party deputies will support the constitutional change.

New gigantic debts of Germany

In the election campaign, Merz promised to establish new economic rules before addressing the problem of missing funds. It happened the other way around—some voters may feel disappointed, reminds Manfred Schäfers from Frankfurter Allgemeine Zeitung.

The new coalition government will be founded on debts that could reach one trillion euros. "The security situation has dramatically worsened. America under Trump's rule is moving away from the Alliance, which provided freedom and security to the democratic West for decades. Germany must invest heavily in its defence capabilities," reads "FAZ." The commentator warned that gigantic new debts will lower the pressure for reforms.

A signal from Germany to Trump and Putin

"The future German government sent a signal 'Germany must be taken into account' in two directions: to the West to Donald Trump and the East to Vladimir Putin. We can no longer count on the US as the greatest partner in NATO, at least not in the coming years. CDU/CSU and SPD agreed to borrow large sums of money. These are unimaginable amounts. This big step is the right one," assess the commentators from public television ARD.

"The room for manoeuvre in the defence budget will finally allow the Bundeswehr to be transformed into a real army capable of protecting Germany and its partners. The infrastructure fund, which has been ruined not only by the current government but also by 16 years of Angela Merkel's rule, is also important," they add.

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