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17-Mar-2025
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Merz’s plans for state borrowing face legal challenges ahead of crucial vote

AUTHOR: M.J. GDNUS

The plans of incoming German Chancellor Friedrich Merz for state borrowing are facing legal challenges ahead of a key parliamentary vote. The Alternative for Germany (AfD), a far-right party, has filed a lawsuit with the Constitutional Court, claiming there was not enough time for external experts to review the proposal. Independent MP Joana Kotar and three MPs from the Free Democratic Party (FDP) have also filed complaints to obstruct the vote.

Merz wants to implement a €500 billion infrastructure fund and changes to borrowing rules to stimulate economic growth and increase defense spending. He secured support from the Greens to push these measures through before the new Bundestag is formed on March 25, fearing that far-right and far-left MPs could block the proposals. Despite previous legal challenges, the plans have been approved by the parliamentary budget committee.

Merz, who leads the CDU-CSU coalition, is working with the SPD and the Greens to secure a two-thirds majority for constitutional amendments, which requires a narrow number of votes. The urgency of passing the package is linked to concerns over changes in U.S. policy and potential threats from Russia.

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