Germany: Debt Brake Thriller Continues – New Meeting Today Between CDU, SPD, Greens

A high-stakes meeting held yesterday (March 10, 2025) between CDU, SPD, and the Greens to resolve differences over the constitutional debt brake reform ended without success. The primary point of contention lies in defense spending: while the Greens demand an exception for Germany’s defense expenditures at 1.5% of GDP instead of the 1% proposed by CDU and SPD, this disagreement has stalled progress. Despite positive indications that a tripartite agreement might still be reached, enabling the reform to pass by March 18 with a two-thirds majority in the outgoing parliament, significant hurdles remain. If no consensus is achieved, Germany could face premature elections or the failure of the constitutional reform. According to Bild, the Greens may agree only if their proposal is accepted. Meanwhile, Christian Lindner and Armin Laschet left the negotiations with strained smiles, indicating the challenging discussions. The Greens propose funding increased defense needs from regular budgets and insist on excluding military spending above 1.5% of GDP from the debt limit. With ongoing debates, all eyes are on today’s crucial meeting.