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Can new German chancellor Merz cure the 'sick man of Europe’?

  • Friedrich Merz became Germany's federal chancellor in early 2025 and visited Brussels to discuss EU defense and fiscal policies with Ursula von der Leyen and António Costa.
  • His visit followed von der Leyen's unveiling of the 'Readiness 2030' plan in early March, which proposed €150 billion in low-interest loans to boost EU military investment.
  • Merz spearheaded a constitutional amendment exempting defense spending above 1% of GDP from Germany's debt brake, while warning debt should remain an exceptional EU measure limited to specific crises.
  • He emphasized that taking on debt at the EU level should be a rare measure, reserved only for extraordinary situations, to prevent ongoing shared financial obligations across member states.
  • The upcoming EU budget debate for 2028-2032 will be complex and potentially explosive, requiring Germany and France to find common ground amid differing views on defense spending and fiscal rules.
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France24 broke the news in France on Thursday, May 8, 2025.
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