Debt and defence headache for Merz after AfD and far left make gains

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Parties have faced serious obstacles to increase defense expenditure in Europe after the parties opposed to armed for Ukraine to reduce the strict limit of the country’s orrow in the orrow of the German elections.

Merge had formally maintained their promise to Sunday’s rules, even voting for the “Debt on Break” reform of Germany for a badly required infrastructure investment and money for an European-width expedition to increase the defense budget.

However, Germany (AFD) and hard-left Die Lynn have won more than 210 seats needed for “blocking minority” in the German Parliament.

It gives them the power to prevent any amendment in Germany’s Debt Break, it is a rule included in the Constitution to restrict official orrow in the Constitution and to keep the structural deficit to 5.5 percent of GDP.

The same condition applies to the creation of a special off-balance sheet fund, such as Vladimir Putin’s full-scale invasion of Ukraine by Chancellor Olaf Skolz in 2022, applied for € 100 billion in the German armed forces to fund an overhul to the German armed forces.

Holler, the chief economist of the Berrenberg Bank, warned that Sunday’s results could create a serious headache for the Merge. “At times when it is important to increase the cost of military and Ukraine and to make the tax burden easy for workers and agencies, Germany can fight to find a financial place to do so,” he said.

“The failure to increase military spending can cause Germany to have deep problems with its NATO partners. Angry US President Donald Trump will also increase the risk of US-EU trade war, “added samling.

Consultant Eurasia Group Germany and European Defense Covering Analyst Jane Techou says: “You have a biggest issue for the next government – perhaps the biggest problem – you have a blocking minority. The The This is a huge problem. “

Economists have warned that the Debt O Break will be impossible to finance a few billion euros, without changing the Debt Break or making a special off-budget fund. Urgently requires additional investment Eurozone’s largest economy. These include increasing transportation and communication infrastructure in the context of Ukraine aggression, as well as a lot of defense budget.

The scale of this challenge is strengthened by Trump’s return to the White House, introducing direct peace talks with Russia and pulling our protection guarantee from Europe, which has forced European leaders to discuss the crisis on how to fill the vacuum.

Although Merge says he believes he can find funds for money for investment Slashing welfare provided And stimulating economic growth, many analysts do not believe that these national systems will be sufficient.

If Merge Debt decides to renovate the brake – perhaps as part of an agreement with Sholz’s Social Democratic Party (SPD) and Green’s partners, both support reforms – Sunday results mean that he would be forced to navigate the thorny political navigate.

The Historic Tihassic second -ranked AFD on Sunday, with about 20 percent of the vote, supports higher defense expenses, but opposed Ukraine to armed and opposed the Debt Break change. Merge has also killed any direct cooperation with the far right team.

Dye Lynn, which ends about 9 percent, supports the Debt Break reform, but strictly opposed military support for Ukraine and higher expenditure on German armed forces.

Jens Sadekum, a professor at the Department of International Economics at Dasselterf’s Heinrich Hein University, described the situation “difficult to discuss, but not impossible.”

He said that it could be possible to discuss any agreement with Dye Link, perhaps creating a special off-budget fund for civilian infrastructure and using nearly $ 50 billion savings for funding from the budget.

“The problem is that they will ask for the price,” he said about Dye Link. He said that in an agreement with hard-left die Link, Merge could face intense opposition from his party, he said.

Some analysts, including Berrenberg Smiting, have argued that in the wake of Ukraine’s situation severe deteriorated, the Merge Debt could probably suspend a national emergency.

However, this national move allows only a limited increase in expenditure for a specified period. It will also be at risk of being hit by a constitutional court in Germany, which in 2021 Blowing an € 60bn hole After the verdict against an attempt to use the epidemic-era of emergency funds to pay for green changes in the federal budget.

“It was possible to have a super majority for the CDU, Social Democrats and Greens among the simple stars, and the financial policies needed in Germany would have been possible,” said Sadekum. “Now your tweets and twists and ওয়ার্কআআআআআআআআআআআআআআআআআআআআআআআআআআআআআআআআআআআআআআআআআআআআআআআআআআআআআআআআআআআআআআআআআআআআআআআআআআআআআআআআআআআআআআআআআআআআআআআআআআআআআআআআআআআআআআআআর