Germany’s Bundestag recently approved a massive debt package, pushing the country to borrow nearly €1 trillion for defense and infrastructure. The decision marked a historic constitutional change, allowing for the suspension of Germany’s so-called “debt brake.” However, this move has sparked intense backlash from opposition parties, particularly the Alternative for Germany (AfD).
AfD co-leader Alice Weidel has criticized the decision, calling the debt a “death blow for the euro.” She argues it will have severe consequences for Germany’s future, including rising interest rates, disruption in credit markets, and a ripple effect across the eurozone, with smaller countries bearing the brunt. She also accuses CDU leader Friedrich Merz of breaking his campaign promise to uphold fiscal responsibility, a betrayal that has led to growing dissatisfaction within his own party.
Despite vocal opposition, including lawsuits from other parties like the Left Party and FDP, the debt package passed easily, with 513 votes in favor. Notably, the law was passed under the previous Bundestag, before the current government took office. The package includes heavy spending on defense, climate initiatives, and a commitment to carbon neutrality by 2045. Many of Merz’s critics, including former CDU member Alexander Gauland, argue that Merz’s policies are reminiscent of those under Angela Merkel’s leadership, which they believe led to the party’s current troubles.
On the other side, Merz and his allies, including the Social Democrats (SPD), argue that the package is vital for Germany’s stability and security in these uncertain times. SPD leader Lars Klingbeil defended the package as a necessary compromise to rebuild Germany and strengthen its military, while others like FDP leader Christian Dürr warned that Merz’s debt-driven strategy could sacrifice Germany’s long-term prosperity for short-term political gain.
While the debate rages on, it’s clear that Germany is on a pivotal path, with the political divide growing deeper as the country navigates its financial future.
