Merz: Germany Must Embrace Budget Cuts Alongside Financial Package

Friedrich Merz, who is expected to become the next conservative Chancellor of Germany under the Christian Democratic Union (CDU), stated that cost reduction measures should be part of discussions during coalition negotiations with the center-left Social Democrats. This statement came following his support for an unprecedented stimulus package.

Friedrich Merz, who leads the conservative CDU/CSU faction, stated that the incoming German administration will need to reduce expenses regardless.
His proposed financial plan backed by debt
, valued at €500 billion ($545 million).

“Cutting costs will be necessary at the federal level, state level, and within local communities,” said Merz, who is expected to become the next chancellor, during an interview with German public broadcaster ARD.

Merz also noted, “The margins have remained unchanged.”

The significant economic plan has sparked considerable controversy, partly due to its inclusion of easing Germany’s constitutional restrictions on borrowing.

Budget Committee approves spending plan at Bundestag

The expenditure proposal also has the backing of the center-left Social Democratic Party (SPD). The party is presently engaged in discussions aimed at forming a coalition government.
coalition government
with the CDU/CSU after
an early election held last month
The package includes investments in
defense and infrastructure
.

To be approved, the package requires a two-thirds majority vote in both of Germany’s legislative chambers: the Bundestag, which is the lower house, and the Bundesrat, which serves as the upper house. It has already secured endorsement from the Bundestag’s Finance Committee.

Following initial objections, Germany’s Green party, known for their environmental advocacy, is anticipated to support the package because of the $100 billion earmarked for combating climate change.

Merz anticipates that the constitutional amendments will be approved before the new Bundestag begins its term on March 25.

Financial package challenged

A group of German MPs intends to seek recourse from Germany’s Federal Constitutional Court in Karlsruhe to block next week’s scheduled vote on the multi-billion euro economic rescue plan.

Joana Cotar, an independent member, has once again initiated legal action at the Karlsruhe court, seeking to have the vote delayed. The Constitutional Court acknowledged receiving her filing on Sunday.

Three representatives from Germany’s Free Democratic Party (FDP), which prioritizes economic matters, stated their intention to submit an immediate appeal to the court. They argued that insufficient time had been allowed for public discourse regarding the societal impacts of the package.

As stated by Florian Toncar, the financial specialist from FDP, the present German administration consisting of the SPD and Greens has failed to address “quite basic and crucial queries” regarding the plan.

Toncar informed the news agency dpa that this issue cannot be genuinely debated and analyzed within the limited timeframe, warning that the deliberation on the package in parliament might end up being merely procedural.

Difficult coalition negotiations ahead

Merz said

The talks between the coalition and the SPD continue.

might involve “highly challenging discussions” regarding the necessary changes he refers to as well as potential reductions in the federal budget.

Merz stated that we need to save.

When discussing the timeframe for the establishment of Germany’s new coalition, Merz stated that it is currently too soon to make predictions.

“The conversation is far from over. We have yet to determine the date for establishing the new government,” he stated.

Merz aims to take office as chancellor before Easter, which falls around mid-April, approximately 50 days following the early election.

Edited by: Wesley Dockery

Author: Felix Tamsut (with dpa, AFP)