Friedrich Merz Weighs EU Debt Amid Rising Global Threats
During his first trip to Brussels as German chancellor, Friedrich Merz expressed openness to EU borrowing for defense, given exceptional circumstances. The EU's largest economy, Germany, traditionally opposed common debt except for COVID recovery, but increased Russian hostility has prompted reconsideration. Merz emphasized fiscal prudence amid rising global debt concerns.
Friedrich Merz, on his inaugural visit to Brussels as the German chancellor, did not dismiss the possibility of common EU borrowing to strengthen defense, albeit under exceptional circumstances. He emphasized Germany's fiscal conservatism, a nation historically averse to shared debt save for the COVID-19 pandemic recovery.
The escalating Russian aggression in Ukraine and doubts over U.S. support for NATO have intensified discussions about Germany's stance on regional security funding. Merz, newly sworn in, acknowledged the need for strategic fiscal conversations without committing to a direction at a press briefing with European Commission President Ursula von der Leyen.
Merz reiterated that EU borrowing should remain an exception, without specifying if the current geopolitical climate qualifies. Stressing the importance of a robust EU defense capability, Merz, who previously facilitated a significant defense budget increase, remains cautious of global rising debts and their sustainability concerns.
(With inputs from agencies.)
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