CDU Leader Friedrich Merz Considers Debt Brake Reform

Friedrich Merz, leader of Germany's CDU, suggests potential reforms to the debt brake law, which limits public deficits, if the changes focus on boosting investments rather than welfare spending. Within the party, momentum for discussing reform has grown, highlighted by support from CDU state leaders and Berlin's mayor.

Friedrich Merz, leader of the Christian Democrats (CDU), remarked that Germany's debt brake, currently restricting public deficit to 0.35% of GDP, has potential for reform. Speaking ahead of the federal election, Merz questioned the purpose of such a reform, suggesting it should enhance investment rather than boost consumption and welfare.

The possibility of reforming the debt brake emerged as an internal debate within the CDU, reignited by Berlin's mayor, Kai Wegner. Several influential CDU figures from regional governments have shown support for these discussions, especially as the debt brake also impacts state financial strategies.

Recent party meetings witnessed increasing pressure from CDU state premiers, urging Merz to integrate reform plans into the CDU's election agenda, highlighting the mounting momentum for change within the party.

(With inputs from agencies.)