During his first visit to Brussels such as German Chancellor, Friedrich Merz did not exclude the idea of a common loan from the European Union to strengthen the defense of the block, while specifying that this could only be foreseen in exceptional circumstances, highlighting its concern against increased world debt.
Germany, the first economy of the European Union, historically rejected the common debt, except during the Covid-19 pandemic during which common funds had been used to finance recovery programs. However, Russia’s growing hostility with respect to Europe since the invasion of Ukraine, as well as the fear of a disconnection of the United States against NATO allies, have strengthened the calls to make Berlin make a new exception to strengthen regional security.
A use of debt only in exceptional circumstances
Friedrich Merz, who assumed the position on Tuesday, said in a joint press conference with the president of the European Commission, Ursula von der Leyen, who did not want to anticipate discussions about the various financing options. When asked about the question of the common debt, the German mantra repeated according to which the European Union must only be borrowing in exceptional circumstances, without specifying if he considered that the current situation could also be described.
Before his appointment, Friedrich Merz had asked Europe to release the United States in terms of security. He also had a historical fiscal package adopted by Parliament to allow his government to radically increase national defense spending, which suggests a firmer position than his predecessor in defense.
The curator has long declared in favor of the budgetary rigor. He said that he was on Friday “concerned with the constant increase in public debt worldwide, not only in Europe, but also, for example, in the United States.” “And I wonder how much time it will be possible not only to refinance the debt itself, but also to finance interest payments. We cannot continue to be indefinitely,” he added.
Source: BFM TV
