Friedrich Merz urged to curb German defence borrowing

The Council of Economic Experts in Germany has called for Friedrich Merz to rein in defense borrowing, recommending that military spending should be integrated into the regular budget to avert the risk of national debt surging to 98% of GDP by 2040. This move aims to maintain fiscal stability and avoid excessive reliance on borrowing, which could have far-reaching implications for Germany’s economic health and its ability to meet future financial commitments. The suggestion underscores the broader economic context of balancing national security needs with sustainable fiscal policies.