Morning Briefing: Die eigenen Leute nutzen eine Schwachstelle des Kanzlers
In der Schuldenpolitik braut sich Ungemach in der Unionsfraktion zusammen. Es geht um die Frage: Wie viel Schulden verträgt ein Staat – und zwei Probleme von Friedrich Merz.
Good morning, esteemed readers, the German Chancellor enjoys a vacation, yet the coalition is worlds apart from holiday mode. Within the SPD faction, some members floated the idea of enshrining the Bund for climate adaptation in the Grundgesetz amendment on the weekend. However, the Union members are troubled by the rising criticism of tax and budget plans.
Most concerning for the Chancellor is the latter, as it touches upon the Union's fundamental principle: how much debt a state can bear. Growing numbers of Union deputies estimate that the state cannot sustain the debt levels previously planned by the government. Union budget policy expert Yannick Bury informed my colleague Martin Greive: another deputy speaks of a "next credibility setback" if the Union overruns the budget.
The draft budget anticipates an increase in the Bund's debt by more than 200 billion Euros next year, and over a trillion Euros by the end of the decade. This is unprecedented in history – and carries significant consequences: interest expenses will double by the end of the decade to around 80 billion Euros annually, with 80 percent of the budget then allocated to social affairs, defense, and debt servicing.
Written by urgent.news from Handelsblatt's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
