Chancellor Friedrich Merz on Saturday ruled out a further loosening of German borrowing limits before the next federal election in 2029, arguing it would be irresponsible to take on more debt.
Merz moved quickly to loosen Germany’s constitutionally-enshrined borrowing limits known as the “debt brake” after winning an election in February last year, freeing up hundreds of billions of euros for defence and infrastructure spending.
But the move created a backlash including from among his own voters. Critics argued the new debt gave the government more leeway for day-to-day spending rather than improving Europe’s largest economy by addressing years of underinvestment.
“In my view, taking on more debt is irresponsible,” Merz told the ARD broadcaster during his Christian Democratic Union’s (CDU) party conference in Stuttgart, where the party also passed a motion against more debt brake reform.
The fundamental message of this party conference is clear, and this is my own: We are taking on enough debt during this legislative period.”