
Germany reacts quickly to geopolitical changes in the world and also encourages Brussels. Friedrich Merz courageously returns Germany to a leadership position, writes Auron Dodi.
On Tuesday evening (04.03.) Friedrich Merz, Germany's incoming chancellor, announced that he had agreed with his expected government partners, the Social Democrats (SPD), to invest in defense by borrowing without limit. In future, all defense spending exceeding one percent of gross domestic product will be exempt from the restrictions of the constitutional debt brake.
It was also agreed to invest massively in infrastructure, amounting to 500 billion euros, over the next ten years. Third, Germany's federal states will also be allowed to borrow, which is happening for the first time.
The leader of the conservative CDU, Friedrich Merz, said in Berlin that "in the face of threats to freedom and peace on our continent, our defense must now also be based on the motto: 'Whatever it takes'."
For all three decisions, Germany's constitution must now be changed.
The agreement between the CDU and SPD came unexpectedly
We have reached an agreement in record time between the CDU/CSU and the SPD on the financial framework for the entire legislature – and the main thrust is foreign policy. After the clash in the White House between Ukrainian President Zelensky and the new US administration, shock spread across Europe and a cascade of actions followed.
This has also put Germany under immense pressure. Merz's statement on the historic measures came hours before President Trump's first speech to both houses of the US Congress. Before Trump's speech, there were rumors circulating in European capitals that Trump might announce the US's withdrawal from NATO in his speech.
Therefore, Merzi said on Tuesday that “I am very grateful that with this decision we are fully demonstrating today the ability to act in the foreign and defense policy of the Federal Republic of Germany.” He further added that: “if it happens tonight that Trump considers or even announces an exit from NATO, then we as the Federal Republic of Germany are the first to react appropriately to this in advance.”
The importance of Germany's decision for Europe
Europe aims to mobilize up to 800 billion euros for defense, as decided at a special EU summit (06.03.) in Brussels. But this can only be achieved in the medium term. According to Bloomberg and the Frankfurter Allgemeine Zeitung, it is now Berlin that is insisting in Brussels to start talks on a long-term reform of the community's budgetary rules. This would allow EU countries to spend "whatever they deem right" on armaments, as Chancellor Olaf Scholz put it.
But until that happens, individual countries can act more quickly. With the measures taken, German defense spending is expected to reach 3.5 percent of GDP by 2027, analysts conclude. This investment provides security for all of Europe. Germany advances ahead of other countries.
It remains to be seen whether the massive financial investment will also change the nature of the Bundeswehr: that is, whether the German armed forces will take on an interventionist nature, such as the armies of Great Britain and France.
Fiscal and political turnaround
Deutsche Bank spoke of “the largest and fastest turnaround in fiscal policy in German history after reunification.”
Since German reunification in 1989, German government spending has never increased as fast as it does today. And by such a large amount. Just to finance reunification, Germany decided to carry out a similar fiscal expansion. It is a financial package of about 1 trillion euros, or 1,000 billion euros.
But there is another aspect. The loans that will be taken out to finance the measures are expected to affect Germany in a similar way to the time after reunification. As a result of the measures, in the five years after reunification, Germany's budget deficit increased from 41% of GDP to 60%.
Germany's budget deficit is currently 62%, but is expected to rise to 84%. This is still a low debt, compared, for example, to France, which has a budget deficit of 115%.
Consequences of the measures for Europe and Germany
Financial markets reacted immediately to Merz's statement: with euphoria, but at the same time by increasing the costs of long-term German government bonds, as the risks increase. And this increases borrowing costs throughout the Eurozone. However, Germany's move demonstrates a desire for investment and as a rule the markets reward this.
The decisions taken are expected to have a positive impact on the German economy. They increase the security and willingness of entrepreneurs to invest. In addition, industrial capacities that have become redundant, e.g. in the automotive industry, can be used for the military industry.
Regarding the infrastructure fund, it was decided to create a special fund with a very specific purpose, and not a form of loan, so that the people would not be immediately burdened by the repayment of the debt. Special funds are loans that can be repaid very slowly. Repayment could take one or two generations, according to observers.
Braktisje e premtimeve të fushatës nga CDU/CSU në situatë të jashtëzakonshme
Vetëm 10 ditë pas zgjedhjeve CDU/CSU braktisi premtimin kryesor të fushatës elektorale, për t’i nxjerrë paratë për investime nga kursimet dhe për të mos e prekur frenën e borxhit. Kjo është kritika më e madhe me të cilën përballet tani CDU-ja dhe Merzi.
Por Merzi nuk është i pari kancelar (i ardhshëm) që e ndryshon qëndrimin pas zgjedhjeve, në situata të jashtëzakonshme. Në vitin 2002, kancelari socialdemokrat Gerhard Schroder braktisi pjesërisht premtimet elektorale dhe nisi me “Agenda 2010” një program të gjerë të shkurtimeve sociale e reformimit të tregut të punës.
Por as kritikët nuk e mohojnë dramatikën e situatës gjeopolitike aktuale. Rrethana të jashtëzakonshme justifikojnë hapa të jashtëzakonshëm.
Heinrich August Winkler: 2025 – kthesa më e thellë nga rënia e perandorisë sovjetike
Historiani i shquar gjerman, Heinrich August Winkler shkruan në Frankfurter Allgemeine Zeitung (07.03.) se pak javë pas riardhjes në pushtet të Presidentit Trump “viti 2025 ka të ngjarë të jetë kthesa më e thellë në historinë botërore që nga rënia e perandorisë sovjetike midis viteve 1989 dhe 1991, dhe në të vërtetë ndoshta që nga fundi i Luftës së Dytë Botërore 80 vjet më parë”. Politologë të njohur si Ivan Krastev i krahasojnë shndërrimet e nisura nga SHBA me një revolucion kulturor, me pasoja të paparashikueshme për SHBA dhe Perëndimin.
Merz: miratimi i vendimeve “një udhëtim i vështirë”
Friedrich Merzi e shfrytëzoi këtë moment për të zgjidhur çështjen e fondeve, problemin financiar që solli shpërbërjen e koalicionit trepartiak të kancelarit Scholz. Megjithatë, tre ndryshimet e kushtetutës për miratimin e masave, pritet të jenë „një udhëtim i vështirë”, siç u shpreh Merz në një mbledhje të CDU-së. Migrimi, kthimi që në kufi i migrantëve që kërkon CDU-ja, vazhdon ta ndajë me socialdemokratët. Kjo megjithëse ai u bëri lëshim socialdemokratëve me fondin e gjerë për infrastrukturën, pra për shkollat, rrugët, hekurudhat etj.
Leximi i parë i paketës ligjore do të nisë të hënën, më 13 mars, leximi i dytë dhe i tretë priten në 18 mars. Miratimi do të kërkohet në Bundestagun e vjetër, pasi me Bundestagun e dalë pas zgjedhjeve të 23 shkurtit, dy partitë e skajit të djathtë dhe të majtë, AfD dhe E Majta, pritej ta bllokonin dakordimin. E Majta ka kërcënuar edhe tani se mund ta çojë “shpërdorimin” e besimit të zgjedhësve nga Merzi, anashkalimin e Bundestagut të ri, para Gjykatës Kushtetuese gjermane.
The agreement between the CDU/CSU and the SPD, once approved by the Bundestag, will see the “outdated” fiscal taboos of the constitution abandoned. The constitutional brake, which limits new spending to 0.35% of GDP, was a self-inflicted “problem” that is somewhat incomprehensible to today’s world outside of Germany. The German Central Bank has also proposed measures to reform the budget brake in recent days.
The liberating coup initiated by Merzi proves his leadership skills. "Berlin is back" is a phrase you hear a lot in Brussels now, still surprised by the turn in Germany./ DW