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SPD Presses Debt-Brake Overhaul as Merz Rejects New Borrowing

Coalition leaders convene tonight to address the impasse over fiscal rules.

Overview

  • SPD leaders call for a comprehensive rewrite with an "investment booster," pointing to the coalition agreement and warning against an investment freeze.
  • Chancellor Friedrich Merz reiterates that further borrowing is off the table, saying Germany's debt capacity has been reached.
  • The CDU pushes a "hard" debt brake and argues soaring expenditures, not the rule itself, are the core problem, echoing a Stuttgart party resolution.
  • Coalition leaders from the SPD and the Union are set to meet at the Chancellery on Wednesday night to discuss budget policy and competitiveness, with the debt-brake dispute on the agenda.
  • An expert commission charged with options remains far from consensus before its end‑March target, and any Basic Law change would need a two‑thirds majority the government lacks, though the Left has signaled support.