💬 The likely Chancellor of Germany, Friedrich Merz, leader of the CDU/CSU bloc, who won the recent parliamentary elections, has initiated negotiations on the creation of a new special fund of 200 billion euros to increase defense spending and provide assistance to Ukraine.
Source: PRYAMYI
💡 According to Bloomberg, Germany is considering several options for financing new military expenses. One option involves creating a separate fund, while another suggests expanding the existing fund by 100 billion euros. There is also the consideration of adapting the debt brake to allow for additional defense spending.
📊 To implement any of these options, a two-thirds majority vote is required in parliament, which could complicate the decision-making process when the new parliament convenes.
🛡️ Merz promised to increase investments in the German military to counter Russian aggression, but his plans may face difficulties due to the blocking minority of other parties in parliament.
📞 On February 25, Merz and SPD leader Lars Klingbeil are scheduled for a phone call to discuss the situation regarding Ukraine’s support and defense spending. Coalition talks are expected to begin on March 6 after the regional elections in Hamburg.