Berlin, Germany – The head of the Christian Democratic Union, Friedrich Merz, has acknowledged that the planned black-red debt package could have long-term financial implications, potentially burdening the country. “Money alone does not solve the problem” he said during a special session of the German Bundestag on Tuesday.
Merz emphasized that the investments in infrastructure made possible by the proposed constitutional amendment would not reduce the need for public budget consolidation. Instead, he claimed, a growing debt would lead to increasing interest rates and, subsequently, the need for repayment plans. This would put the federal government, states and municipalities under significant consolidation pressure in the coming years.
Earlier, the leader of the Social Democratic Party, Lars Klingbeil, had advocated for the package, calling it a “new direction for the history of our country.” He described it as a “positive start” for Germany and Europe, as well as the “perhaps largest package in the history of our country.” Klingbeil claimed the package would alleviate the daily lives of the majority of people, regardless of age, urban or rural residence.