German Business Expectations Improve on Merz’s Spending Plans

German Business Expectations Improve on Merz’s Spending Plans

German business optimism rose to the highest level since June 2024 as Chancellor-in-waiting Friedrich Merz readies hundreds of billions of euros of spending to modernize the economy.

The actual coalition talks begin in Berlin. Friedrich Merz starts out of a weak position – he has also lost credit in his own camp.

"The atmosphere is poisoned" — coalition talks in Germany threaten to turn into a failure: EADaily

EADaily, March 24th, 2025. Negotiations of the CDU/CSU and SPD bloc on the formation of a ruling coalition are taking place in an "explosive atmosphere" and may end in failure due to inter-party contradictions, the Bild tabloid writes, citing its own sources.

Merz's spending splurge risks blowback among German conservatives

BERLIN - A bold move by Germany’s prime minister-in-waiting Friedrich Merz to ease longstanding caps on government spending has won praise internationally but signs are emerging of a domestic political blowback.

Friedrich Merz, the man who took up the promise of a conservative change in politics, stands before the pile of his own credibility. It is uncertain whether he can even make it to the Chancellery. Currently, he acts as a stirrup holder of a left-wing policy, which should completely destroy Germany. Special debts, unprecedented tax increases and the destruction of all obstacles for illegal migrants will dismantle the country.

As Union and SPD have only a small majority in the Bundestag, the potential future chancellor Merz considers the term "great coalition" to be inappropriate. He also has two alternative ideas.