Germany is bracing itself for cost-cutting measures as Conservative leader Friedrich Merz proposes a €500 billion debt-backed financial package. Despite his proposal, Merz acknowledges that significant cuts will be necessary across all levels of government.
The landmark package includes relaxed constitutional limits on debt and allocations for investments in defense and infrastructure. However, several lawmakers are challenging the plan by filing suits with Germany’s Federal Constitutional Court to postpone the vote.
Merz hopes to pass the constitutional changes before the new Bundestag starts its term on March 25. Coalition negotiations with the center-left Social Democratic Party (SPD) will involve “difficult conversations” about reforms and possible budget savings.
The package has gained approval from the SPD, but environmentalist Greens are expected to support it due to its €100 billion allocation for climate change efforts. Despite this, some lawmakers express concerns that the discussion on the package’s repercussions is insufficient.
Merz aims to become chancellor ahead of Easter in mid-April, 50 days after the snap election. As Germany prepares for cost-cutting measures, the country faces difficult coalition negotiations and potential challenges to the proposed financial package.
Source: https://www.dw.com/en/germany-faces-cuts-along-with-financial-package-merz-says/a-71938751