Description: After winning the elections, German Chancellor Friedrich Merz pledged to increase defense spending and stimulate Germany’s stagnant economy. He had seamlessly resolved the coalition problem by siding with the SPD, however, in order to pass resolutions regarding his half a trillion-debt restructuring infrastructure package the Chancellor would need the majority support which he could obtain from the Green party. The Greens have strenuously opposed the infrastructure package as did the far – right AfD which launched a legal challenge to Merz’ proposals before Germany’s constitutional court, which was additionally supported by the Left party. The proposals from the ruling coalition to be aimed at braking what’s been known as the debt brake imposed on Germany’s economy system in the 2008 crisis in order to incentivize investments. With opposition from the Greens and AfD, Merz could face a protracted inter – political negotiations on crucial policy measures.
Impact: The upending of transatlantic relations between Europe and the US put European countries in complete crisis mode especially where defense is concerned. Germany as Europe’s driving economic and defense force is facing critical opposition especially from the far – right AfD. The Green party at the moment is edging towards stimulating the CDU / CSU – SPD coalition into making political compromises close to their party’s core interests. The Merz led coalition would need the Greens to secure the vote on these crucial policy issues Germany is currently facing before the dissolution of the outgoing parliament since opposition forces could completely block these measures when the current Bundestag takes shape. Expedient talks between the winning coalition and the Green party in the upcoming period are expected, while oppositional AfD would politically pressure these measures not to be decided before entering parliamentary discussions.