Banca March | In the new Parliament, which will not take office until 24 March, the far right AfD and the far left Die Linke have 216 seats out of a total of 630. With more than a third of the votes, they could block the easing of the deficit. However, the current parliament has the power to amend the constitutional article that restricts the structural deficit to just 0.35% of GDP. Merz has announced that the CDU/CSU will negotiate with the Social Democrats (SPD), the Greens and the FDP to reach an agreement and avoid a last-minute blockade by the extremists. Similarly, the possibility of forming a special defence fund, which also requires a two-thirds majority in the Bundestag, is being extended. Merz has initiated talks with the SPD to approve a fund amounting to €200 billion. Other alternatives would be to expand the existing fund of €100 billion or to increase defence spending by removing the debt brake – in any case, all these options would require a supermajority.
Merz’s first proposals: dissolution of debt ceiling and special defence fund of €200 billion
