Germany: Merz Considers Using Outgoing Parliament to Loosen Debt Brake

The winner of Germany’s federal elections and leader of the Christian Democratic Union (CDU), Friedrich Merz, is exploring ways to loosen the country’s strict debt ceiling by reconvening the outgoing parliament. According to Financial Times, the ruling parties still hold the required two-thirds majority in the current legislative body. Speaking to journalists on February 24, 2025, a day after the federal elections, Merz expressed concern over the far-right AfD and left-wing Die Linke securing over one-third of the seats in the Bundestag, granting them the power to block any constitutional changes, including the so-called debt brake. Both AfD and Die Linke oppose reforms to fund increased defense spending. However, Merz noted that the ruling parties could still act within the existing legislative framework until March 24. He plans to discuss potential solutions with the Social Democrats, Greens, and Liberal Free Democrats before then. Despite the challenge posed by opposition parties, Merz emphasized the ability of the federal council to make decisions at any time without interruption. CDU and its sister party CSU won the elections with 28.5% of the vote, paving the way for Merz to succeed Olaf Scholz as Chancellor. However, AfD and Die Linke together hold enough seats to block any debt brake modifications. Economists warn that without changes or an off-budget special fund, funding critical investments in Europe’s largest economy will be impossible. The scale of the challenge has intensified due to recent shifts in U.S. foreign policy under President Trump. Although Merz insists on finding funds by reducing welfare payments and boosting economic growth, many analysts doubt the sufficiency of such measures. While unprecedented, reconvening an outgoing Bundestag for decision-making isn’t without precedent. In October 1998, a special session approved German military involvement in NATO airstrikes in Kosovo. Constitutional rules dictate that the new parliament must convene no later than 30 days after the election, but the Bundestag president can call it earlier upon request. Experts note this scenario is technically possible but warn of potential legal challenges from the opposition. Green leader Robert Habeck supports swift reform before the new parliament is seated, while Scholz advocates cautious discussions. Outgoing Finance Minister Jörg Kukies cautions against hasty constitutional changes, warning of questionable political messaging. Meanwhile, AfD co-leader Alice Weidel reiterated her opposition to such reforms, emphasizing that the state shouldn’t spend beyond its means. Die Linke’s co-leader, Ines Sverdner, stated their party might support debt brake changes if more public funds are allocated to social infrastructure but reasserted their stance against military enhancements or arms shipments to Ukraine.