Friedrich Merz, the winner of the German election and leader of the center-right Christian Democratic Union, is considering utilizing the outgoing parliament to modify the country’s stringent “debt brake” before newly elected far-right and far-left lawmakers assume their positions. This strategy would enable Merz to reform the borrowing cap to increase defense spending, a proposal opposed by both the rightwing Alternative for Germany (AfD) and the leftwing Die Linke.
In the recent election, the AfD and Die Linke secured more than one-third of the seats in the Bundestag, granting them the capability to block the constitutional change necessary for reforming the debt brake in the forthcoming parliament. However, Merz pointed out that mainstream parties could still pass measures under the current legislature, which can convene until March 24.
Merz stated that the German Bundestag is capable of making decisions without interruption, even after elections. He further mentioned plans to discuss the matter with the Social Democrats (SPD), the Free Democratic Party (FDP), and the Greens within the following days, indicating there are four weeks left to deliberate on the issue.
Alice Weidel, co-leader of the AfD, criticized the proposal, labeling it as “electoral fraud” and accusing Merz on X of breaking his election promises. She stated that this move would defy the people’s will.
Throughout his campaign, Merz maintained his commitment to the debt brake—intended to limit government borrowing and keep the structural deficit at 0.35 percent of GDP—while remaining open to discussing possible amendments. Economists have warned that without altering this provision or establishing a special off-budget fund, funding the necessary additional investments in Germany’s economy would be challenging. These investments include upgrading transport and communications infrastructure and significantly boosting the defense budget following Russia’s full-scale invasion of Ukraine.
The challenge is further compounded by former US President Donald Trump’s shift towards Russia and his threat to withdraw US security guarantees from Europe, prompting European leaders to engage in crisis talks on their response.
Boris Pistorius, the defense minister and SPD politician, commended Merz’s initiative and emphasized the need to increase the defense ministry’s budget to over €100 billion. Pistorius expressed his approval of the CDU’s apparent willingness to act, citing a sense of responsibility.
Merz has also suggested finding funds for investment by reducing welfare payments and stimulating economic growth, but many analysts doubt these measures’ adequacy. Although unusual, convening an outgoing Bundestag to approve decisions is not unprecedented. Some economists caution that Merz’s approach could face constitutional challenges, reflecting on a 2023 incident where Germany’s constitutional court invalidated the government’s repurposing of €60 billion in pandemic-era funds. However, constitutional law experts indicate little likelihood of legal barriers to Merz’s plan.
Hanno Kube, a law professor at Heidelberg University, stated that from a constitutional standpoint, the old Bundestag remains capable of taking action until its final session. Whether to use the final days of the legislative period for significant political projects, such as constitutional amendments, remains a political decision. Robert Habeck, the Green leader, advocated for a swift reform of the debt brake before the new parliament convenes. In contrast, SPD’s outgoing finance minister Jörg Kukies remarked that there is insufficient time to push through such amendments, and doing so with an old majority would send a questionable political message.