Germany’s new debt reality

Cologne, 9.3.2025
The election campaign is over and the CDU/CSU has become the most powerful party. To avoid a fascist coalition, they are forced to talk to the Social Democrats.
During the 20th Bundestag election campaign, the conservatives criticised the so-called 'Ampel' for being less strict when it came to state finances. They had borrowed billions to transform the economy into a green society. However, when things changed after Putin's war against Ukraine began, even more debt was incurred.
When insolvency minister Habeck declared that the bad economic situation was not the result of the traffic light, but of Putin, the conservatives came up with their main idea. Solid state financing.
And less than a month later we have a new reality. Merz announced debts for infrastructure of about 500,000,000,000 euros. He also announced unlimited debt for the military, exceeding 1% of GDP.
Solid state financing, he told us. The main reason for the radical changes is Trump. Trump's withdrawal of support for Ukraine has alarmed everyone in Western Europe. Europe is not ready to become a global military power.
Even before the old coalition collapsed, the new geopolitical reality was coming to the fore. Even before the election, the new geopolitical reality was coming true. Why do we have to lie when it comes to fighting for every vote? Nevertheless, it is not known why 500,000,000,000 euros are needed for infrastructure right now. Has Trump also changed the importance of infrastructure in Germany?
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