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Merz makes offer to Greens as he seeks to increase German defence spending Merz presses Greens to name their terms for German defence spending rise
(about 4 hours later)
Chancellor-in-waiting attempting to garner support for fiscal rule changes before new parliament convenes ‘What more do you want from us?’ asks chancellor-in-waiting as he seeks urgent support for fiscal rule changes
Germany’s would-be chancellor has attempted to win the support of the Greens for his proposed fiscal rule changes, offering to expand the scope of defence spending and demanding to know: “What more do you want from us?” Germany’s chancellor-in-waiting has tried to win over the Greens to his ambitious but controversial plans to raise the country’s defence spending, promising to expand the scope of the plans and demanding of them: “What more do you actually want from us?”
The outgoing parliament is meeting to debate the creation of a €500bn (£420bn) fund for infrastructure investment and radical changes in Germany’s borrowing limits in order to boost defence spending. The outgoing parliament met on Thursday to debate the creation of a €500bn (£420bn) fund for infrastructure investment and radical changes in Germany’s borrowing limits in order to boost defence spending.
Friedrich Merz, whose conservatives won last month’s election and who is on the verge of becoming the new leader, wants to seal the funding deal before the new parliament convenes in less than two weeks. An expanded group of far-right and far-left MPs could oppose it in the new Bundestag, a “blocking minority” Merz is keen to avoid.Friedrich Merz, whose conservatives won last month’s election and who is on the verge of becoming the new leader, wants to seal the funding deal before the new parliament convenes in less than two weeks. An expanded group of far-right and far-left MPs could oppose it in the new Bundestag, a “blocking minority” Merz is keen to avoid.
Amid expectations that Germany will relax a key element of its strict fiscal rules known as the “debt brake”, its allies have responded favourably and markets have rallied. Economic forecasters have said a public spending boost is likely to help the country emerge from two years of economic doldrums.Amid expectations that Germany will relax a key element of its strict fiscal rules known as the “debt brake”, its allies have responded favourably and markets have rallied. Economic forecasters have said a public spending boost is likely to help the country emerge from two years of economic doldrums.
But the deal is far from being realised, as Merz’s CDU/CSU alliance and his probable future coalition partner, the Social Democrats (SPD), need to secure the support of the Greens in order to muster the two-thirds majority required to change the constitution. But an unusually tense and fractious debate proved on Thursday that the deal is far from being realised, as Merz’s CDU/CSU alliance and his probable future coalition partner, the Social Democrats (SPD), are far from securing the required support of the Greens.
On Thursday, Merz offered to expand the scope of defence spending to include civil defence and intelligence spending, asking the Greens: “What more do you want from us in so short a time?” In an attempt to win them over Merz offered to expand the scope of defence spending to include civil defence and intelligence spending, as well as allowing up to €50bn for climate protection. He asked the Greens: “What more do you want from us in so short a time?”
He restated his belief in the urgency of the situation. “We have to do something to improve our defensive capabilities, and quickly,” he said. “The word deterrence must rapidly be given a credible military foundation.” Merz stressed his belief in the urgency of investing in security. “We have to do something to improve our defensive capabilities, and quickly,” he said, describing a “truly worrying security situation in Europe”. Germany must “do something now … Anything else would be irresponsible,” he added.
Before the debate on Thursday, the Greens had indicated that negotiations were at a stalemate, with senior figures citing “grave flaws” in the legislation, including the lack of prominence it gave to climate policies. The Greens’ parliamentary co-leader Britta Haßelmann accused Merz of “bad manners”, saying he had not sought a proper, respectful conversation with her party but had instead simply left a message on her voicemail.
Merz has faced accusations he intends to use the new money to finance projects that will please the new government’s conservative voter base, and has been called on to provide guarantees, including commitments to much-needed widespread reforms. Before the nearly four-hour debate, the Greens had indicated that negotiations were at a stalemate, with senior figures citing “grave flaws” in the legislation, including the lack of prominence it gave to climate policies.
The far-right Alternative für Deutschland and the far-left Die Linke have, meanwhile, lodged complaints with the constitutional court, which might deliver its ruling this week. Throughout the debate, Merz was accused of wanting to use the new money to finance projects that would please the new government’s conservative and SPD voter base, and was repeatedly called on to provide guarantees, including commitments to much-needed reforms, as well as extra cash to renovate hospitals, schools and kindergartens.
Sign up to Headlines Europe In a blistering attack, Heidi Reichinnek of Die Linke accused Merz’s conservatives and the SPD of being “undemocratic”, convening the old Bundestag “because you’re dissatisfied with the election results”.
A digest of the morning's main headlines from the Europe edition emailed direct to you every week day Both the far-right Alternative für Deutschland and Die Linke lodged complaints with the constitutional court before the debate, which could deliver its ruling this week.
after newsletter promotion Merz has argued that raising defence spending has become a matter of urgency because of Russia’s invasion of Ukraine, not just for Germany but for the whole of Europe. With Donald Trump in the White House, he has argued, the continent must become more independent.
Merz has argued that raising defence spending has become a matter of urgency because of Russia’s invasion of Ukraine, not just for Germany, but for the whole of Europe. With Donald Trump in the White House, he has argued, the continent must become more independent.
Economists have described Merz’s multibillion-euro package as everything from a “bazooka” to “an extremely risky bet”, while he has called it vital “in light of the threats to our freedom and peace on our continent”.Economists have described Merz’s multibillion-euro package as everything from a “bazooka” to “an extremely risky bet”, while he has called it vital “in light of the threats to our freedom and peace on our continent”.
The second and third readings of the government’s plans will take place next Tuesday. In between now and then, Merz will continue to negotiate with the Greens, according to his party officials. The second and third readings of the government’s plans will take place next Tuesday, before heading to the upper house. Over the coming days Merz will continue to negotiate with the Greens, according to his party officials.
Reuters contributed to this report.