Germany's Debt Plan Faces Legal Hurdles Amid Economic Woes

Germany's Chancellor-in-waiting Friedrich Merz faces legal challenges as he seeks to pass a 500 billion euro infrastructure fund before a new parliament convenes. Opposition parties and lawmakers argue over the lack of scrutiny. Merz aims to avert economic stagnation amid geopolitical tensions and internal forecasts of weak growth.


Devdiscourse News Desk | Updated: 17-03-2025 18:10 IST | Created: 17-03-2025 18:10 IST
Germany's Debt Plan Faces Legal Hurdles Amid Economic Woes
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Incoming German Chancellor Friedrich Merz's ambitious infrastructure spending plan, valued at 500 billion euros, is facing significant legal challenges just days before a crucial parliamentary vote. The far-right Alternative for Germany party has lodged a complaint, questioning the rushed legislative process.

Merz is pushing for rapid approval of extensive debt rule changes to preempt potential obstruction from a more ideologically diverse Bundestag. He cites shifting U.S. foreign policies under President Trump as catalysts for his expedited timetable, emphasizing geopolitical threats to Europe.

Despite securing support from the Greens, the plan faces scrutiny from within the Free Democrats and dissenting Social Democrats. New economic reports predict minimal growth for Germany, underscoring the urgency of Merz's proposals amid rising international competition and domestic pressures.

(With inputs from agencies.)

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