Merz's Bold Gamble: Germany at a Crossroads

Friedrich Merz, Germany's chancellor-in-waiting, urges parliament to approve a significant increase in borrowing for infrastructure and defense spending. Merz argues this move is crucial for European security, but faces resistance, especially from the Greens. Failure could impact coalition talks and lead to another election.

Chancellor-in-waiting Friedrich Merz made an urgent appeal to lawmakers on Thursday, advocating for an unprecedented rise in state borrowing. This move, he argues, is critical for Germany's global standing and European security. Merz is racing against time to secure approval from the outgoing parliament for a 500 billion euro infrastructure fund.

Amid heightened urgency, following his victory in Germany's February 23 election, Merz warned that Europe faces a critical juncture, with threats from both a hostile Russia and an unreliable U.S. He faces the challenge of securing funds before a new parliament convenes on March 25, especially given the presence of a growing far-right and far-left contingent.

Despite concessions offered during a tense Bundestag session, Merz struggled to gain the necessary Green Party support. Critics accused him of leveraging security threats for a borrowing spree while ignoring climate and poverty issues, complicating coalition talks with the SPD and risking potential new elections if no deal is reached.

(With inputs from agencies.)