Germany's Merz Proposes Overhaul of Debt Brake System to Boost Defense, Infrastructure Spending

In Germany, the Christian Democratic Union (CDU) and Christian Social Union (CSU) and the Social Democratic Party (SPD) are engaged in coalition negotiations following the recent general election. As part of these negotiations, there is a proposal from the CDU/CSU to amend Germany's constitution to permit higher government borrowing. The purpose of this potential amendment is to enable increased military spending.