Germany’s election frontrunner Friedrich Merz said on Sunday he was open to reforming the country’s strict borrowing rules as he came under pressure about how he would finance higher defence spending.
In a televised debate ahead of the parliamentary election on February 23, the Christian Democrat (CDU) leader conceded Germany’s constitutional “debt brake” could require reform as he said that defence spending in Europe’s largest economy would “probably go towards 3 per cent” of GDP amid pressure from US President Donald Trump.
After chancellor Olaf Scholz said it was “ridiculous” to claim spending cuts and economic growth alone could provide the tens of billions needed to finance a bigger defence budget, Merz opened the door to changing the constitutional requirement that caps Germany’s structural deficit at 0.35 per cent of GDP.