Germany Votes 2025 – Volume 2: Battleground German Debt Brake
Download a PDF of this articleWelcome to the 2nd volume of Germany Votes 2025.
Today, we explore one of the most pivotal issues for the upcoming German government: the debt brake. The debt brake has become a key policy battleground for Germany’s future. It not only significantly limits the government’s ability to make essential investments but also played a key role in the collapse of the SPD-Greens-FDP coalition. One thing is for certain: whoever leads the next German government will have to confront the prospect of fundamentally reforming the debt brake.
Today, we explore one of the most pivotal issues for the upcoming German government: the debt brake. The debt brake has become a key policy battleground for Germany’s future. It not only significantly limits the government’s ability to make essential investments but also played a key role in the collapse of the SPD-Greens-FDP coalition. One thing is for certain: whoever leads the next German government will have to confront the prospect of fundamentally reforming the debt brake.
Caroline Mücke-Kemp
Head of Public & Government Affairs Germany
In a nutshell:
- German Debt Brake: CDU/CSU leader Friedrich Merz has carefully floated the idea of reforming the debt brake to allow for investments in defense and
infrastructure projects. If the debt brake is reformed, Merz will want to limit
spending to defense and new net borrowing for federal states. - Dr. Robert Habeck (Greens) confirmed as the Greens’ chancellor candidate:
Having secured 96.5% support, he now faces the challenge of uniting the party behind a pragmatic agenda to overcome low polling numbers (11.4%). - Election Outlook: Current polling indicates a likely CDU/CSU-led coalition
with the SPD. This would presumably leave Chancellor Olaf Scholz (SPD)
expected to retire or take an advisory role post-election. - SPD’s chancellor candidate debate: Chancellor Scholz’s poor polling
numbers are currently fueling a very public debate if Scholz should be
replaced by Germany’s most popular politician, Federal Minister of Defense
Boris Pistorius (SPD), as the party’s chancellor candidate.
Days left until German Federal Election on 23 February 2025, as of 20 November 2024.
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There won’t be a future government in Germany without me.
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